Inventory

Inventory

1. Asset held for sale/ in prod/ consumables

   • In the ordinary course of business

2. Initial measurement

   • less discounts, includes costs
     • manufactured
       • FOH, DL, VC
     • excludes VAT
   • FIFO
     • periodic: OB + Purchases - Sales = CB units
     • Periodic OR PERPETUAL
   • WAC
     • Perpetual: Moving WAC
     • Periodic: WAC
       • purchases acc

3. Subseq measurement

   • Impairment
   • De recognition
     • Sold, FEB not expected(expensed), change in use

4. Reporting

   • SOCI
     • Nature: change in input costs
       • Change in FG and WIP
       • RM and Consumables USED
     • Function
       • Cost of sales + GP