About this Course

To facilitate an understanding of the principles underlying the accounting for inventories; and

To equip participants with the ability to apply the recognition, measurement and disclosure requirements in FRS 2 to accounting for inventories. 

To ensure that participants are able to: 

• Understand the underlying nature of inventories as defined by FRS 2
  
• Distinguish between costs that are included in inventories and those that are expensed off
  
• Determine net realizable value as defined by FRS 2
  
• Apply the cost formulas in FRS 2
  
• Identify write-downs and make appropriate adjustments for reversals
  
• Understand the rationale for the disclosures and presentation requirements in FRS 2
  

Programme Outline 

• Scope of FRS 2
  
• Definitions
  
• Measurement of inventories
  

              - Cost of inventories

                    - Identifying costs of purchase and conversion and other cost

                    - Principles determining the costs that are included in inventory

                    - Measurement of costs

                    - Special situations: for example, inventories of service provider and agricultural produce

              - Cost formula

                    - Requirements

                    - Techniques for assigning costs to inventories

              - Net realizable value

                    - Determination of net realizable value

                    - Requirements relating to write-downs and reversals

              - Principles underlying the cost formulas and net realizable values

• Recognition as an expense
  

Requirements

Underlying principles

• Disclosures
  

Intended For

A foundation level programme intended for both Practising and Non-Practising Accountants.

Training Methodology

Lecture style, with Exercises/Case Studies

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