Comparing Inventory Valuation: ICDS II, AS-2, and Ind AS-2 Standards Explained with Scope, Cost Formula & More
The document compares the standards for inventory valuation under ICDS II, AS-2, and Ind AS-2. It outlines the scope, cost formula, change in valuation method, and cost of purchases for each standard. ICDS II excludes certain work-in-progress and financial instruments, while AS-2 excludes inventories of commodity traders and certain producers. Ind AS-2 does not apply to inventories held by commodity broker-traders and producers of agricultural products. Cost formulas include FIFO and weighted average, with consistency required under Ind AS-2. Changes in valuation methods are restricted, and costs of purchases include duties and taxes under ICDS.