Professional Documents
Culture Documents
Group 9:
VALUATION OF INVENTORIES
Indian AS 2
Scope exceptions:
1.
2.
3.
4.
IFRS IAS 2
1.
2.
3.
4.
Scope exceptions:
VALUATION OF INVENTORIES
ShouldIndian
be valued
at lower of
AS2
cost or net realisable value
Cost of inventories
comprises all costs of
purchase, costs of conversion
and other costs incurred in
bringing the inventories to
their present location and
condition
Should be valued at
lower
of cost
and net
IFRS
IAS2
realisable value
Cost of inventories
comprises all costs of
purchase, costs of
conversion and other
costs incurred in
bringing the inventories
to their present location
and condition
VALUATION OF INVENTORIES
Indian AS2
1.
1.
Excluded costs
abnormal amounts of
wasted materials, labour or
other production costs
2.
3.
administrative overheads
that do not contribute to
bringing inventories to
their present location and
condition
4.
2.
3.
4.
Excluded costs
IFRS IAS2
abnormal amounts of
wasted materials, labour
or other production
costs
storage costs, unless
those costs are
necessary in the
production process
before a further
production stage
administrative
overheads that do not
contribute to bringing
inventories to their
present location and
condition
selling & distribution
costs
VALUATION OF INVENTORIES
Indian AS2
IFRS IAS2
VALUATION OF INVENTORIES
Disclosures:
Indian AS2
IFRS IAS2
Disclosures:
1.
2.
to sell;
period;
IFRS IAS 07
Cash comprises cash on hand and
demand deposits
IFRS IAS 07
IFRS IAS 07
IFRS IAS 07
The separate disclosure of cash
flows arising from investing
activities is important because the
cash flows represent the extent to
which expenditures have been
made for resources intended to
generate future income and cash
flows. Only expenditures that result
in a recognized asset in the
statement of financial position are
eligible for classification as
investing activities
]
IFRS IAS 07
AS03
]
CASH FLOW STATEMENT
AS03
IFRS IAS 07
Interest paid and interest and
dividends received are usually
classified as operating cash flows
for a financial institution. However,
there is no consensus on the
classification of these cash flows for
other entities. Interest paid and
interest and dividends received
may be classified as operating cash
flows because they enter into the
determination of profit or loss.
Alternatively, interest paid and
interest and dividends received
may be classified as financing cash
flows and investing cash flows
respectively, because they are costs
of obtaining financial resources or
returns on investments.
]
CASH FLOW STATEMENT
AS03
IFRS IAS 07
Disclosures :
Disclosures :
]
CASH FLOW STATEMENT
AS03
IFRS IAS 07
AS10 VS IAS16
AS1O
IFRS16
Fixed Assets:
Historical Cost
II.
Revalued Price
Live stock
Purchase price
Exclusions
Historical Cost:
Administrative purposes
Rental to others
I.
Tangible assets
Exceptions-
AS10
IFRS16
Disclosures AS10
Gross and net book values of fixed assets at the beginning and at the end of accounting period
showing, disposal, acquisition and other movements.
Disclosure:
Revalued amount substituted for historical cost of fixed assets, the method adopted to compute the
revalued amount, and whether an external valuer has valued the fixed assets, in case where fixed
external has valued amount.
If there is loss then it can be adjusted against the balance of revaluation reserve.