IAS 2 Inventories

（Edited by freelance Chinese translator li – English to Chinese translation or Chinese to English translation services- financial translation）

IAS 2 Inventories（存货）

The objective of this Standard is to prescribe the accounting treatment for inventories. A primary issue in accounting for inventories is the amount of cost to be recognised as an asset and carried forward until the related revenues are recognised. This Standard provides guidance on the determination of cost and its subsequent recognition as an expense, including any write-down（调低账面价值） to net realisable value. It also provides guidance on the cost formulas（成本计算公式） that are used to assign costs to inventories.

Inventories shall be measured at the lower of cost and net realizable value(净变现价值).

Net realisable value is 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 cost of inventories shall comprise all costs of purchase(购入成本), costs of conversion（运输成本） and other costs incurred in bringing the inventories to their present location and condition.

The cost of inventories shall be assigned by using the first-in, first-out (FIFO)（先进先出法） or weighted average cost formula（加权平均法）. An entity shall use the same cost formula for all inventories having a similar nature and use to the entity. For inventories with a different nature or use, different cost formulas may be justified. However, the cost of inventories of items that are not ordinarily interchangeable and goods or services produced and segregated for specific projects shall be assigned by using specific identification of their individual costs.

When inventories are sold, the carrying amount of those inventories shall be recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of inventories to net realisable value and all losses of inventories shall be recognised as an expense in the period the write-down or loss occurs. The amount of any reversal of any write-down of inventories, arising from an increase in net realisable value, shall be recognised as a reduction（抵减项） in the amount of inventories recognised as an expense in the period in which the reversal occurs.