International Accounting Standard 2

The International Accounting Standard 2 ( IAS 2 ) entitled inventories (in the original English: Inventories ) is an accounting standard of the International Accounting Standards Board (IASB), the accounting for inventories regulates. Despite its name, the standard has a meaning within IFRS that goes far beyond accounting for inventories, as many other standards refer to the valuation regulations formulated there.

Goal setting

The standard addresses the accounting balance sheet item inventories within the working capital ( current assets ). The regulations focus on the determination of the acquisition or production costs when initially recognized and the subsequent valuation.

scope of application

The standard is generally to be applied to all inventories. According to IAS 2.2. do not fall under IAS 2:

work in progress from long-term production ( IAS 11 )
Financial instruments
Inventories of producers of agricultural and forestry products ( IAS 41 )

In addition, there are exceptions for minerals (IFRS 6) and inventories from commodity brokers who use the retrograde method for valuation .

Valuation

According to IAS 2, inventories are to be valued at the lower of historical acquisition or manufacturing costs and net realizable value (IAS 2.9). A write-up beyond the historical costs, as introduced by the IASB as part of fair value accounting in later standards, is not provided for under IAS 2.

Individual evaluation and collective evaluation

Non-exchangeable inventories are to be valued individually in accordance with IAS 2.23 (principle of individual valuation). A collective valuation is only permitted if the items are usually interchangeable (IAS 2.25). The FIFO method and the average method are permitted within the framework of a collective assessment. The LIFO method was no longer used in IAS 2004 as part of the IAS “Improvement Projects” carried out in 2003.

Versions and validity in the European Union

The currently valid version of IAS 2 dates from 2003 and came into force on January 1, 2005. With the regulation of the European Commission of December 29, 2004, this version also applies in the European Union from January 1, 2005 (see also: International Accounting Standards ).

Individual evidence

↑ Regulation (EC) No. 2238/2004 of the Commission of December 29, 2004 amending Regulation (EC) No. 1725/2003 on the adoption of certain international accounting standards in accordance with Regulation (EC) No. 1606/2002 of the European Parliament and the Council on IFRS 1 and IAS Nos. 1 to 10, 12 to 17, 19 to 24, 27 to 38, 40 and 41 and SIC Nos. 1 to 7, 11 to 14, 18 to 27 and 30 to 33

[1] Regulation (EC) No. 2238/2004 of the Commission of December 29, 2004 amending Regulation (EC) No. 1725/2003 on the adoption of certain international accounting standards in accordance with Regulation (EC) No. 1606/2002 of the European Parliament and the Council on IFRS 1 and IAS Nos. 1 to 10, 12 to 17, 19 to 24, 27 to 38, 40 and 41 and SIC Nos. 1 to 7, 11 to 14, 18 to 27 and 30 to 33