Objective, Scope & Definition

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....he cost formulas that are used to assign costs to inventories. * This standard is very important as valuation of inventory impacts both P&L as well as Balance Sheet i.e., if closing stock is overvalued/undervalued, it impacts CY profits as well as asset value in the Balance Sheet. Scope This Standard applies to all inventories, except: * Financial Instruments (If any contract satisfies finan....

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....Commodity broker-traders who measure their inventories at fair value less costs to sell. When such inventories are measured at fair value less costs to sell, changes in fair value less costs to sell are recognised in profit or loss in the period of the change. Notes - * If inventories are recognized at net realizable, the profit or loss on those are recognized in the year even though it is not ....