Sample Disclosure – Inventories (27 November 2008)
Inventories
Inventories are stated at lower of cost and net realisable value.
Cost is determined using the first in, first out method. The cost of raw materials comprises costs of purchase. The costs of finished goods and work-in-progress comprise costs of raw materials, direct labour, other direct costs and appropriate proportions of manufacturing overheads based on normal operating capacity.
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.
One Response to “Sample Disclosure – Inventories (27 November 2008)”
Sample Disclosure - Inventories (27 November 2008) « Learnaccounting’s Weblog on December 14, 2008
[...] Posted by learnaccounting on December 14, 2008 If you need sample disclosure of accounting policy on inventories please refer to:Accounting Policy On Inventories [...]