New UK GAAP 2015: Application of FRS 100-102 in the UK

Chapter 9 Inventories

1 Introduction

2 Comparison between Section 13, previous UK GAAP and IFRS

3 Requirements of Section 13 for inventories

   3.1 Terms used in Section 13

   3.2 Scope

       3.2.1 Scope issues

1. 3.2.1.A Spare parts
2. 3.2.1.B Real estate inventory held for short term sale

   3.3 Measurement

       3.3.1 What is included in the cost of inventories?

       3.3.2 Costs of purchase of inventories

       3.3.3 Costs of conversion

       3.3.4 Costs excluded from inventories

       3.3.5 Storage and distribution costs

       3.3.6 General and administrative overheads

       3.3.7 Borrowing costs

       3.3.8 Inventories acquired through a non-exchange transaction

       3.3.9 Joint products and by-products

       3.3.10 Service providers

       3.3.11 Inventories held for distribution at no or nominal consideration

       3.3.12 Agricultural produce harvested from biological assets

       3.3.13 Cost measurement methods

       3.3.14 Additional company law considerations

   3.4 Impairment of inventories

       3.4.1 Selling price less costs to complete and sell

       3.4.2 Reversal of impairment of inventory

   3.5 Recognition of inventory in profit or loss

   3.6 Presentation and disclosure

       3.6.1 Presentation of inventories

       3.6.2 Disclosure of inventories

1. 3.6.2.A Additional Company Law disclosures

4 Summary of GAAP differences

List of Examples

   Example 9.1: Inclusion of costs for obligations within production overheads

Chapter 9 Inventories ...