IAS 2 Inventories
A living animal or plant.
Costs directly related to the units of production, such as direct labor together with a systematic allocation of fixed and variable production overheads that are incurred in converting materials into finished goods.
All of the purchase price, import duties and other taxes (other than those subsequently recoverable by the enterprise from the taxing authorities), and transport, handling and other costs directly attributable to the acquisition of the item. Trade discounts, rebates, and other similar items are deducted in determining the costs of purchase.
The assumption that the items of inventory which were purchased first are sold first, and consequently the items remaining in inventory at the end of the period are those most recently purchased or produced.
Inventories are assets:
• Held for sale in the ordinary course of business;
• In the process of production for such sale; or
• In the form of materials or supplies to be consumed in the production process or in the rendering of services.
The estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.
The higher of an asset’s net selling price and its value in use.