Inventories such as raw materials and finished goods in general, and in manufacturing companies in particular, constitute the second largest item after fixed assets. Therefore, they require a fair valuation so that the financial statements fairly portray the performance and financial position of the business.
This chapter seeks to enable you to develop knowledge and understanding of:
Meaning and significance of inventories.
Scope and coverage of AS-2 on ‘Valuation of Inventories’
Principles and norms of standard accounting treatment of inventories, methods of inventory H valuation and ...