/Length 2979 Cost formula The same cost formula is not required to be applied to all inventories that have a similar nature and use to the entity. Leases. Go to main navigation Go to main content. endobj View Notes - IAS 2 - BDO Inventories from ACCT 354 at McGill University. applying IAS 2 Inventory or another applicable IFRS. IAS 12. IAS 2 prescribes the accounting treatment for inventories. >> IAS 10 Events after the Reporting Period, paragraph 21 if there are any material non-adjusting events (e.g. /ColorSpace /DeviceRGB << stream Employee benefits – IAS 19 24 Share-based payment – IFRS 2 26 Taxation – IAS 12, IFRIC 23 27 Earnings per share – IAS 33 28 Balance sheet and related notes 29 Intangible assets – IAS 38 30 Property, plant and equipment – IAS 16 31 Investment property – IAS 40 32 Impairment of assets – IAS … %PDF-1.5 endstream Employee benefits – IAS 19 24 Share-based payment – IFRS 2 26 Taxation – IAS 12, IFRIC 23 27 Earnings per share – IAS 33 28 Balance sheet and related notes 29 Intangible assets – IAS 38 30 Property, plant and equipment – IAS 16 31 Investment property – IAS 40 32 Impairment of assets – IAS … [IAS 21.1] The principal issues are which exchange rate(s) to use and how to report the effects of changes in exchange rates in the financial statements. /BitsPerComponent 8 uuid:5bdc6a81-f932-4ff7-b51d-c79d0c3a9df7 endstream Inventories – IAS 2 38 22. /Filter [/DCTDecode] �:H^���x��ZX������Ry��a�S����1�ӕ�U��`�Dlj�?�d���0�6d-��m��,�`��gq"�9:�#G�81�m�7�$;-�֊V�8���c��0�3�&� s�Igy��_`:E�똸�'/��Z�x'Y��h�o�⢏�.NT�Z,�by�ʓ��IYE*�c�g��O�) Impairment of assets – IAS 36 35 20. stream BDO is an international network of independent public accounting, tax and advisory firms (the “BDO network”), which perform professional services under the name of BDO (the “BDO member firms”). BDO refers to one or more of the independent member firms of BDO International Ltd, a UK company limited by guarantee. BDO refers to one or more of the independent member firms of BDO International Ltd, a UK company limited by guarantee. Each BDO member firm in Mongolia is a separate legal entity and has no liability for another entity’s acts and omissions. Looking for Tax Provision Outsourcing, Global Coordination or Tax Provision Automation? >> These examples are based on illustrative examples from IAS 1. IFRS AT A GLANCE IAS 2 Inventories As at 1 July 2014 IAS 2 Inventories Also refer: IFRIC 20 Stripping Costs in the Production The Board concluded that no further amendments to IFRS 2 are needed. For further information about how BDO can assist you and your organisation, please get in touch with one of our key contacts listed below. Intangible assets – IAS 38 32 17. View Notes - IAS 2 - BDO Inventories from ACCT 354 at McGill University. /Metadata 4 0 R The standard requires inventories to be measured at the lower of cost and net realisable value (NRV) and outlines acceptable methods of determining << It also provides guidance on the cost formulas that are used to assign costs to inventories. BDO PLT (LLP0018825-LCA & AF 0206), was registered on 2 January 2019 and with effect from that date, BDO (AF 0206), a conventional partnership was converted to a limited liability partnership. 4 0 obj IAS 2 Inventories - BDO Canada IAS 2 Inventories contains the requirements on how to account for most types of inventory. Events After the Reporting Period. Working with BDO on IFRS. The IAS 2 is applicable to all the inventories, excepting for construction contracts including contracts that are in progress and also includes directly related service contracts and financial instruments. NZ IAS 2 applies to the accounting for ‘inventories’ which are defined to include 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. IFRS 2 . Property, Plant and Equipment. IAS 2 sets out the accounting treatment for inventories, including the determination of cost, the subsequent recognition of an expense and any write-downs to net realisable value. %PDF-1.7 IAS 41 sets out the accounting for agricultural activity – the transformation of biological assets (living plants and animals) into agricultural produce (harvested product of the entity's biological assets). Lease accounting – IAS 17, IFRS 16 36 21. Inline XBRL; ZIP; Example 12: Consolidated and Separate Statements of Financial Position. IAS 2. /MarkInfo << It felt the . [IAS 21.2] Key definitions [IAS 21.8] Functional currency: the currency of the primary economic environment in which the entity operates. The debates resulted in mandatory requirements for share-based payment transactions – i.e. PAGE 2 WORK PLAN PAGE 3 PUBLICATIONS ISSUED PAGE 5 ABOUT BDO Established over 50 years ago, BDO has grown to become the world’s fifth largest accounting, tax and advisory network with combined fee income in 2015 of over $7 billion. IAS 2 prescribes the accounting treatment for inventories. /Filter /FlateDecode We can assist you in managing this process with an assessment of the impact of these new accounting standards or with their implementation. It also provides guidance on the cost formulas that are used to assign costs to inventories. /Marked true Share-based payment transaction is a transaction in which the entity:. IFRS 2 – being issued in 2004. BDO is here to help your business – and you – navigate the COVID-19 health crisis, prepare for recovery, and once again, thrive. HKFRS/IFRS Standard Potential impact of the coronavirus BDO Comments HKAS/IAS 2, Inventories • Net realisable values may decrease, resulting in increased impairment; • If production is decreased, entities must consider that fixed overheads are allocated based on ‘normal capacity’. x��]mo7�n��a?JE�,_w b' r��zqz.�~��l�g���'ݿ��r����5@"[֮��p83�7U������O'�V��Qu������A]դ�k�rJ+�Ѫj#�����}W�^�?��������-��5��{��;��O�o�"�Mw���Oo��F�Dqxj/nTM��i��#G��^�x���f�����yD�E_��RU�������Z���n�6���aU�8���t�Xb�:�?�5�漝��ߞ��n�U{�ż����lwڿ�ͳ��o��u�{�wX��. It was on the 3rd of January 2009, that Satoshi Nakamura mined the first Bitcoin bringing forth into existence the first block of Bitcoin – the Genesis Block. main issues that have arisen in practice have been addressed and there are no In October 2018, the International Accounting Standards Board (the Board) published the results of its research project on sources of complexity in applying IFRS 2 . Inventories are measured at the lower of cost and net realisable value. ����0x �P�s�~�K�wܢZə����&0���"�HI�.�Nh��[���o�V<4� �rה^�� As per AS 2/ IAS 2, Raw materials are written down to their Replacement cost when the Finished goods in which they are to be incorporated are expected to be sold at or above cost. Modifications to address practice issues continue to the date of this publication. Construction Contracts. Such write down in the Raw material is charged to the Income statement as expense. IAS 7. endobj << Earnings per share – IAS 33 30 Balance sheet and related notes 31 16. >> Shalva Ozbetelashvili [IAS 2.6] Any write-down to NRV should be recognised as … Likewise, the costs of the items sold would be recognised in line with IAS 2 Inventory. The standard requires inventories to be measured at the lower of cost and net realisable value (NRV) and outlines acceptable methods of determining The standard generally requires biological assets to be measured at fair value less costs to sell. For self-constructed assets, IAS 2 comes useful as it is more focused on assets produced internally (IAS 16.22). Revenue. Accounting Policies, Changes in Accounting Estimates and Errors. Elionism and the Delphe Knights (Increase Energy by 2) Bacho Ladericcio (Abandoned Monastery Node Manager) Leona (Priest at the Headquarters of Elionian Church) stream NZ IAS 2, paragraph 11 A common error occurs where the full effect of these trade discounts and rebates are deducted off ‘cost of sales’, thereby increasing profits, without reducing the cost of inventories still on hand at reporting date. IAS 2 Inventories - BDO Canada IAS 2 Inventories contains the requirements on how to account for most types of inventory. IFRS 2 . As at 1 July 2015 4 IFRSs Standard Standard Name Effective Date Page IAS 36 Impairment of Assets 1 January 2004 55 IAS 37 Provisions, Contingent Liabilities and Contingent Assets 1 January 1999 56 IAS 38 Intangible Assets 31 March 2004 57 IAS 39 Financial Instruments - Recognition and Measurement 1 January 2005 58 IAS 40 Investment Property 1 January 2005 62 The standard provides guidance on the determination of cost and its subsequent recognition as an expense, including any write-down to … Such write down in the Raw material is charged to the Income statement as expense. the Board, the International Accounting Standards Committee (IASC), issued a discussion paper on the topic. /Length 372 NRV is the estimated selling price in the ordinary course of business, less the estimated cost of completion and the estimated costs necessary to make the sale. IAS 2 also provides guidance on cost formulas that are used to assign costs to inventories. IFRS 2 requires an entity to reflect the effect of share-based payment transactions (including share options to employees) in its profit or loss and statement of financial position.. What is a share-based payment transaction? BDO Center for Corporate Governance and Financial Reporting Dynamic resources for board of directors and financial executives. IFRS 2 requires an entity to reflect the effect of share-based payment transactions (including share options to employees) in its profit or loss and statement of financial position.. What is a share-based payment transaction? 2 0 obj significant fair value changes). ifrss (ias 2, ias 12, ias 17, ias 19, ias 32, ifrs 4, ifrs 5). It felt the main issues that have arisen in practice have been addressed and there are no /Filter [/FlateDecode] BDO is here to help your business – and you – navigate the COVID-19 health crisis, prepare for recovery, and once again, thrive. The IAS 2 is applicable to all the inventories, excepting for construction contracts including contracts that are in progress and also includes directly related service contracts and financial instruments. /Type /Metadata IAS 16. >> IFRS AT A GLANCE IAS 2 Inventories As at 1 July 2014 IAS 2 Inventories Also refer: IFRIC 20 Stripping Costs in the Production "��c���=�=�������iu�~t�IiJ�{���ܠy�V�9���6���y4��I;��0`1RE��ڌ�F�AZ8R��*S�nuiw6 IFRS at a Glance has been compiled to assist in gaining a high level overview of International Financial Reporting Standards (IFRSs), including International Accounting Standards and Interpretations. PDF-XChange Core API SDK (8.0.331) The Board concluded that no further amendments to IFRS 2 are needed. ... Lectures will last 2,5 hours (with ten-minute break) and will be conducted twice a week. 2020-08-12T16:35:56-04:00 Impairment of assets – IAS 36 35 20. IAS 17. 2015-07-10T16:22:22+01:00 Inventories. /Interpolate true Shalva Ozbetelashvili IAS 10. ",#(7),01444'9=82. significant fair value changes). 2 0 obj /Subtype /XML BDO Member Firms are located in over 100 countries worldwide (e) Contact details including e-mail address: HThomson@bdoglobal.com andrew.buchanan@bdo.co.uk 2 EFRAG is carrying out an assessment of the costs and benefits that will arise for preparers and for users in implementing IAS 1 (Revised), both in year one and in subsequent years. Likewise, the costs of the items sold would be recognised in line with IAS 2 Inventory. The Board concluded that no further amendments to IFRS 2 are needed. /Height 2234 We can assist you in managing this process with an assessment of the impact of these new accounting standards or with their implementation. IAS 11. In addition, it also includes biological wealth connected to … Share-based Payment. 2020-08-12T16:35:56-04:00 BDO is here to help with all your ASC 740 & IFRS-IAS 12 guidelines. Healthcare BDO's healthcare practices across the globe brings together healthcare leaders with deep healthcare experience across financial, ... (IFRS & IAS). Share-based Payment. /Pages 5 0 R From BA3 IAS 7 Statement of cash flows Provides guidance on definitions of cash and cash equivalents and how to present cash flows in a statement We have member … BDO will help you to understand and prepare for the changes that will take place. Provisions and contingencies – IAS 37 39 [IAS 2.25] Write-down to net realisable value. These examples are based on illustrative examples from IAS 1. BDO is here to help with all your ASC 740 & IFRS-IAS 12 guidelines. /Type /Catalog /Width 1637 BDO will help you to understand and prepare for the changes that will take place. From BA3 IAS 7 Statement of cash flows Provides guidance on definitions of cash and cash equivalents and how to present cash flows in a statement Investment property – IAS 40 34 19. Share-based payment transaction is a transaction in which the entity:. BDO has ample experience both in implementations of the International Financial Reporting Standards/International Accounting Standards, and in the preparation of financial statements based on those standards.Scope of works offered by BDO in relation to IFRS/IAS implementation:Analysis of differences between accounting principles applied so far and those resulting from IFRS/IAS… << Investment property – IAS 40 34 19. 40 IAS 2 Inventories Also refer: IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine Effective Date Periods beginning on … Conclusion: IAS 38 applies unless cryptocurrencies are held for sale in the ordinary course of business, in which case, IAS 2 applies. The same cost formula is required to be applied to all The standard provides guidance on the determination of cost and its subsequent recognition as an expense, including any write-down to net realisable value. IAS 2 sets out the accounting treatment for inventories, including the determination of cost, the subsequent recognition of an expense and any write-downs to net realisable value. Inventories – IAS 2 38 22. As at 1 Janiary 2014 2 IFRS AT A GLANCE IFRS at a Glance (IAAG) has been compiled to assist in gaining a high level overview of International Financial Reporting Standards (IFRSs) IAS 19. Inline XBRL; ZIP; Example 12: Consolidated and Separate Statements of Financial Position. ���� JFIF ` ` �� C >> 2 | FEBRUARY 2020 U.S. GAAP IFRS Relevant guidance ASC 330 IAS 2 Costing methods Use of last-in first-out (LIFO) is permitted. /Subtype /Image Any costs that are not directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management are expensed in P/L as incurred. /Lang (en-GB) IAS 8. >> Example 1 At 30 June 2016, ABC … x����k�0����c+����I Document stream main issues that have arisen in practice have been addressed and there are no Trainers. IAS 10 Events after the Reporting Period, paragraph 21 if there are any material non-adjusting events (e.g. Trainers. endobj /Length 4720 FAIR VALUE GAINS AND LOSSES For further information about how BDO can assist you and your organisation, please get in touch with one of our key contacts listed below. /StructTreeRoot 6 0 R /Type /XObject /Metadata 4 0 R The intention was to create a decentralized alternative medium of exchange to fiat currency (“paper” money not backed by a scarce commodity but rather by Governments and issued by Central Banks). Property, plant and equipment – IAS 16 33 18. [IAS 21.2] Key definitions [IAS 21.8] Functional currency: the currency of the primary economic environment in which the entity operates. << uuid:06b74641-ce4b-49e2-9d72-e24252b3013f $.' /Type /Metadata Earnings per share – IAS 33 30 Balance sheet and related notes 31 16. Property, plant and equipment – IAS 16 33 18. Lease accounting – IAS 17, IFRS 16 36 21. Automotive BDO is a specialised automotive service provider assisting franchised dealers, manufacturers and industry associations with a wide range of financial and consulting services. Conclusion: IAS 38 applies unless cryptocurrencies are held for sale in the ordinary course of business, in which case, IAS 2 applies. stream /Type /Catalog Provisions and contingencies – IAS 37 39 Intangible assets – IAS 38 32 17. Looking for Tax Provision Outsourcing, Global Coordination or Tax Provision Automation? As per AS 2/ IAS 2, Raw materials are written down to their Replacement cost when the Finished goods in which they are to be incorporated are expected to be sold at or above cost. www.bdo.global IFRS AT A GLANCE IAS 2 Inventories. It is the governing entity of the BDO … IAS 18. Statement of Cash Flows. IAS 2 provides guidance for determining the cost of inventories and the subsequent recognition of the cost as an expense, including any write-down to net realisable value. 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