Which of the following statements about IAS 2 Inventories is correct?
A、Production overheads should be included in cost on the basis of a company's normal level of activity in the period.
B、In arriving at the net realisable value of inventories, trade discounts and settlement discounts must be deducted.
C、In arriving at the cost of inventories, FIFO, LIFO and weighted average cost formulas are acceptable.
D、It is permitted to value finished goods inventories at materials plus labour cost only, without adding production overheads.
A、Production overheads should be included in cost on the basis of a company's normal level of activity in the period.
B、In arriving at the net realisable value of inventories, trade discounts and settlement discounts must be deducted.
C、In arriving at the cost of inventories, FIFO, LIFO and weighted average cost formulas are acceptable.
D、It is permitted to value finished goods inventories at materials plus labour cost only, without adding production overheads.
【参考答案及解析】
Trade discounts should be deducted but not settlement discounts. IAS 2 does not allow the use of LIFO. Production overheads are part of the costs of conversion part of the valuation. of finished goods and do form
Trade discounts should be deducted but not settlement discounts. IAS 2 does not allow the use of LIFO. Production overheads are part of the costs of conversion part of the valuation. of finished goods and do form