Inventory is something almost all businesses have, be it in the form of consumables or goods sold by retailers, or even internally produced.
Even entities providing services are required to keep track of their “cost of sales”, which is dealt with in this section of IFRS for SMEs.
This session focuses on the inventory accounting requirements, and will help you understand inventory costing, closing valuation and impairment.
We seek to empower you as an accountant in finance as well as auditor / reviewer in public services, by:
• Identifying when a business is required / permitted to apply the requirements of a section
• Establishing what the requirements are / guidance is per section, relative to:
o Definitions
o Recognition
o Initial and subsequent measurement
• Discussing any accounting policy elections available
• Identifying the disclosure requirements and where possible, providing illustrative examples
• Section 13: Inventories
o What types of costs may form part of inventory-costing
o Measurement of cost
o Inventory write-downs
o Disclosure
