UK GAAP 2019

Chapter 11Inventories

• 1 INTRODUCTION
• 2 COMPARISON BETWEEN SECTION 13 AND IFRS
• 3 REQUIREMENTS OF SECTION 13 FOR INVENTORIES
  • 3.1 Terms used in Section 13
  • 3.2 Scope
    • 3.2.1 Scope and recognition issues
      • 3.2.1.A Spare parts
      • 3.2.1.B Real estate inventory held for short term sale
      • 3.2.1.C Consignment stock
  • 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
      • 3.6.2.A Additional company law disclosures
• 4 SUMMARY OF GAAP DIFFERENCES

List of examples

• Example 11.1: Inclusion of costs for obligations within production overheads

Chapter 11Inventories

1 INTRODUCTION

Section 13 of FRS 102 – Inventories – addresses the measurement and disclosure requirements for inventories. ...