IAS 2 — Inventories
Effective date: |
First effective as Canadian GAAP under Part I for interim and annual financial statements relating to fiscal years beginning on or after January 1, 2011. Earlier application of Part I was permitted. |
Published by the IASB: |
December 2003 |
Included in Part I of CPA Canada Handbook: |
January 2010 |
Overview
IAS 2 Inventories contains the requirements on how to account for most types of inventory. The standard requires inventories to be measured at the lower of cost and net realizable value (NRV) and outlines acceptable methods of determining cost, including specific identification (in some cases), first-in first-out (FIFO) and weighted average cost.
History of IAS 2
The following table shows the history of this standard subsequent to the adoption of IFRS in Canada.
Date1 |
Development |
Comments |
Included in Part I of the CPA Canada Handbook2 |
January 2010 |
Part I of the CPA Canada Handbook issued |
Effective for interim and annual financial statements relating to fiscal years beginning on or after January 1, 2011. Earlier application is permitted. |
January 2010 |
Notes
- For further details of relevant developments prior to this, please refer to our Deloitte Global section.
- Newly issued, amended or revised IFRSs are part of Canadian GAAP only after they are approved by the Accounting Standards Board in accordance with its due process.
The above summary does not include details of consequential amendments made as the result of other projects.
Related Interpretations
Related IFRIC Agenda Rejection Notice
The rejection notices are available in our Deloitte Global section.- IAS 38 — Classification and accounting for SIM cards (November 2006)
- Discounts and Rebates (November 2004)
- IAS 2 Consumption of Inventories by a service organization (March 2004)
- IAS 2 Cash discounts (July 2002)
AcSB’s IFRS Discussion Group meetings
- January 10, 2019 - IAS 2 and IAS 41: Cannabis Accounting – Costs Incurred Related to Biological Transformation and Presentation
- October 16, 2018 - IAS 2 and IAS 41: Cannabis Accounting – Costs Incurred Related to Biological Transformation and Presentation
- June 21, 2018 - IAS 2: Cannabis Accounting – Presentation
- January 10, 2018 - IAS 32 : Cryptocurrencies
Amendments under consideration
- None