Inventory Management In The Enterprise Through The Application Of Ifrs 2 Inventories

The focus in the article is on the issues of valuation and presentation of the inventories under the meaning on the International Accounting Standard 2 Inventories. The Standard provides guidance on the determination of costs of finished products and its recognition as and expense in the production and sale finished products, including guidance for determination of the net realizable value. The latter is defined as the estimated selling price less the estimated costs of completion and estimated costs necessary to make the sale. The cost of inventories comprises all costs of purchase, cost of conversion and other costs incurred in bringing the inventories to a condition suitable for subsequent use. The amount of the cost for materials used or products sold and the finished product is determined using one of the following methods: a specifically defined value, first-in – first out or weighted average cost of lots delivered. When inventories are sold, the carrying amount of those inventories is recognized as an expense in the period in which the related sales revenue is recognized. The amount of any write-down of inventories to net realizable value is recorded as a current expense and is recognized as an expense in the period the write-down occurs.