COLEGE OF BUSINESS AND ACCOUNTANCY
Topic: Inventories
Introduction
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.
Body:
INVENTORIES
Inventories are assets that are:
1. Held for sale in the ordinary course of business (Finished Goods);
2. In the process of production for such sale (Work in Process); or
3. In the form of materials or supplies to be consumed in the production process or in the rendering of
services (Raw materials and manufacturing supplies).
Examples of inventories:
a. Merchandise purchased by a trading entity and held for resale.
b. Land and other property held for sale in the ordinary course of business.
c. Finished goods, goods undergoing production, and raw materials and supplies awaiting use in the
production process by a manufacturing entity.
Ordinary course of business refers to the necessary, normal or usual business activities of an entity.
RECOGNITION
Inventories are recognized when they meet the definition of inventory and they qualify for recognition as
assets, such as when control (legal title) is obtained by the buyer from the seller.
● Control (Legal title) normally passes when physical possession over of the goods is transferred.
● However, there may be cases where the transfer of control (ownership) does not coincide with the
transfer of physical possession. The transfer of control may precede, coincide with, or comes after the
transfer of physical possession.
An entity considers all relevant facts and circumstances in determining whether it has control,
including the following:
a. Goods in transit
b. Consigned goods
c. Inventory financing agreements
d. Sale with unusual right of return
e. Sale on trial or sale on approval
f. Installment sale
g. Bill and hold sale
h. Lay away sale
Goods in transit
Goods in transit are goods that the seller has already shipped but the buyer has not yet received. The
lack of physical possession may pose a question on which party includes the goods in transit in its
inventories.
Goods in transit may form part of the buyer's or the seller's inventories depending on the sale term, such as:
1. FOB shipping point
● Ownership is transferred to the buyer upon shipment.
● Therefore, the goods in transit form part of the buyer's inventories.
● The buyer records the purcnts payable) on shipment date.
2. FOB destination
● Ownership is transferred to the buyer only when the buyer receives the goods.
● Therefore, the goods in transit still form part of the seller's
● inventories. The buyer records the purchase (and accounts payable) only when he receives
the shipment.
*FOB stands for "free on board.
Freight
Sale contracts may also contain terms for shipping costs indicated by any of the following:
a. Freight Prepaid - The seller pays the freight in advance before shipment. However, this does
not mean that the seller is the one who is supposed to pay for the freight.
b. Freight Collect - Freight is not yet paid upon shipment. The carrier collects shipping costs
from the buyer upon delivery. Thus, the buyer pays for the freight. However, this does not
mean that the buyer is the one who is supposed to pay for the freight.
c. FAS (free alongside) - The seller assumes all expenses in delivering the goods to the dock
next to (alongside) the carrier on which the goods are to be shipped. The buyer assumes
loading and shipping costs. Title passes upon shipment to the carrier.
d. Ex-ship - The seller assumes all expenses until the goods are unloaded from the carrier, at
which time title passes to the buyer.
e. CIF (cost, insurance, and freight) - The buyer pays in lump sum the cost of the goods and
the insurance and freight costs.
f. CF (cost and freight) - The buyer pays in lump sum the cost of the goods and the freight
cost. In either CIF or CF, the seller must deliver the goods to the carrier and pay the costs of
loading. Thus, title passes to the buyer upon delivery of the goods to the carrier.
The foregoing is meant only to define normal terms and usage. Actual contractual arrangements
between a buyer and a seller can vary widely. As a rule, the entity who owns the goods being shipped
should pay for the shipping costs.
Special accounting arises when the term of the sale contract is either "FOB shipping point, Freight
prepaid" or "FOB destination, Freight collect."
a. Under FOB shipping point, freight prepaid, the buyer owns the goods being shipped but
the seller already paid the shipping costs.
b. Under FOB destination, freight collect, the seller owns the goods being shipped but the
carrier will be collecting the shipping costs from the buyer.
ILLUSTRATION 1: Goods in transit
ABC Co. purchased goods with invoice price of P1,000 on account on December 27, 20x1. The related shipping
costs amounted" P10. The seller shipped the goods on December 31, 20x1. ABC Co. received the goods on
January 2, 20x2 and settled the account on January 5, 20x2.
The journal entries in the books of ABC Co. under the different terms of purchase are as follows:
FOB shipping point, Freight collect
December 31, 20x1 Purchases 1,000
Accounts Payable 1,000
January 2, 20x2 Freight-in 10
Cash 10
January 5, 20x2 Accounts Payable 1,000
Cash 1,000
The buyer recognizes "Freight-in" because the buyer is the one who is supposed to pay for the freight. Under FOB
shipping point, the buyer owns the goods in transit. Therefore, the buyer bears the cost of transportation.
"Freight-in" is included as cost of the inventories purchased.
FOB destination, Freight prepaid
December 31, 20x1 No Entry
January 2, 20x2 Purchases 1,000
Accounts Payable 1,000
January 5, 20x2 Accounts Payable 1,000
Cash 1,000
The buyer does not recognize "Freight-in" because the seller is the one who is supposed to pay for the freight.
Under FOB destination, the seller owns the goods in transit. Therefore, the seller bears the cost of transportation.
FOB shipping point, Freight prepaid
December 31, 20x1 Purchases 1,000
10
Freight-in
1,010
Accounts payable
January 2, 20x2 No Entry
January 5, 20x2 Accounts Payable 1,010
Cash 1,010
The buyer records "Freight-in" because the buyer is the one who is supposed to pay for the freight. However,
since the seller already paid the freight (i.e., Freight prepaid), the freight-in is recorded as an increase in
"Accounts payable." This is because the buyer will reimburse the seller for the freight. A "reimbursement
payable" account may be used in lieu of "accounts payable" most especially when the freight cost is material.
FOB destination, Freight collect
December 31, 20x1 No Entry
January 2, 20x2 Purchases 1,000
Accounts Payable 1,000
Accounts Payable 10
Cash 10
January 5, 20x2 Accounts Payable 990
Cash 990
The buyer does not recognize freight-in because the seller is the one who is supposed to pay for the freight. The
buyer treats the freight accommodation (Freight collect) as a reduction to the amount that will be remitted to
the seller. The freight does not affect the cost of inventory.
Consigned goods
Under a consignment arrangement, an entity (called the consignor') delivers goods to another party
(called the 'consignee') who undertakes to sell the goods to end customers on behalf of the consignor.
The consignor retains control over the consigned goods until they are sold to end customers.
Accordingly, before such sale, the consigned goods remain in the consignor's inventory.
Since ownership is not transferred, transfers of consigned goods between the consignor and
consignee are usually recorded only through memo entries.
Freight and other incidental costs of transferring consigned goods to the consignee form part of the
cost of the consigned goods. Repair costs for damagg shipment and storage and other maintenance costs are
charged as expense.
In a typical consignment, the consignee is entitled to a commission on the sales he makes.
Commissions are accounted for as expense by the consignor and as income by the consignee. Accordingly,
commissions do not affect the cost of consigned goods. In cases where commission is paid to the consignee in
advance, the consignor records the advanced commission as receivable and not as cost of inventory.
ILLUSTRATION 2: Total inventory
ABC Co.'s records on Dec. 31, 20x1 show the following:
● Goods located at the warehouse (physical count) 3,800,000
● Goods located at the sales department (at cost) 13,600,000
● Goods in-transit purchased FOB Destination 1,600,000
● Goods in-transit purchased FOB Shipping Point 2,100,000
● Freight incurred under "freight prepaid" for the
goods purchased under FOB Shipping Point 60,000
● Goods held on consignment from XYZ, Inc. 1,800,000
Requirement: Compute for the total inventory on Dec. 31, 20x1.
Goods located at the warehouse (physical count) 3,800,000
Goods located at the sales department (at cost) 13,600,000
Goods in-transit purchased FOB Shipping Point 2,100,000
Freight incurred under FOB Shipping Point 60,000
Total Inventory 19,560,000
ILLUSTRATION 3: Consigned goods
ABC Co. consigned goods, costing P10,000, to XYZ, Inc. Transportation costs of delivering the goods to XYZ
totaled P2,000. Repair costs for goods damaged during transportation totaled P500. To induce XYZ, Inc. in
accepting the consigned goods, ABC Co. gave XYZ P1,000 representing an advance commission. How much is
the cost of the consigned goods?
Answer: 12,000 (10,000 cost + 2,000 freight)
ILLUSTRATION 4: Correct Inventory and Accounts Payable
On December 31, 20x1, ABC Co. has a balance of P160,000 in its inventory account determined through
physical count and a balance of P100,000 in its accounts payable account. The balances were determined
before any necessary adjustment for the following:
a. Merchandise costing P10,000, shipped FOB shipping point from a vendor on December 30, 20x1,
was received and recorded on January 5, 20x2.
b. A package containing a product costing P50,000 was standing in the shipping area when the
physical inventory was conducted. This was not included in the inventory because it was marked
"Hold for shipping instructions." The sale order was dated December 17 but the package was
shipped and the customer was billed on January 3, 20x2.
c. Goods in the shipping area were included in inventory because shipment was not made until
January 4, 20x2. The goods, billed to the customer FOB shipping point on December 30, 20?1, had a
cost of P20,000.
d. Goods shipped F.O.B. destination on December 27, 20?1, from a vendor to ABC Co. were received on
January 6, 20x2. The invoice cost of P30,000 was recorded on December 31, 20?1 and included in
the count as "goods in-transit."
Requirement: Determine the adjusted balances of
(1) inventory and
(2) accounts payable as of December 31, 20x1.
Inventory Accounts payable
Unadjusted balances 160,000 100,000
a. Purchase on FOB shipping pt. 10,000 10,000
b. Unshipped goods not counted 50,000
c. Unshipped goods counted
d. FOB destination improperly included (30,000) (30,000)
Adjusted balances 190,000 80,000
Inventory Financing Agreements
Inventories may be acquired or sold under various forms of financing agreements, which may
include the following:
a. Product financing agreement - a seller sells inventory to a buyer but assumes an obligation to
repurchase it at a later date. br This arrangement does not result to the transfer of control over the
asset. Therefore, the seller retains ownership over the inventory.
b. Pledge of inventory - a borrower uses its inventory as o collateral security for a loan. This
arrangement does not result onto the transfer of control over the asset. Therefore, the borrower
retains ownership over the inventory.
● Warehouse financing - under this arrangement, a third party (ex. A public warehouse)
holds the inventory and acts as the creditor’s agent. The public warehouse then furnishes the
creditor the warehouse receipts evidencing
c. Loan of inventory - an entity borrows inventory from another entity to be replaced with the same
kind of inventory. This arrangement results to transfer of control over the asset. Accordingly, the
borrower includes the loaned goods in its inventory.
Sale with unusual right of return
The buyer normally recognizes goods purchased under a sale with right of return at the time of sale
unless the goods purchased does not qualify for recognition as asset.
For example, the buyer does not recognize any inventory when:
a. the buyer assesses that no economic benefits will be derived from the goods, such as when
they are defective or unsalable;
or
b. the buyer intends to return the goods to the seller within the time limit allowed under the
sale agreement.
Sale on trial
Under a "sale on trial" (or "sale on approval), a seller allows a prospective customer to use a good for a
given period of time. At the end of that time, if the prospective customer is satisfied with the good, he
purchases it. If not, he returns it to the seller.
Under this type of arrangement, the legal title over the good does not pass to the prospective
customer until he approves it and purchases it. Therefore, the good remains in the seller's inventory during
the trial period. Accordingly, the prospective customer does not include the good in his inventory until he
purchases it.
In some arrangements, the good is considered sold if it is not returned within a reasonable period of
time after the trial period has lapsed.
Installment sale
An installment sale where the possession of the goods is transferred to the buyer, but the seller retains
legal title solely to protect the collectability of the amount due is considered as a regular sale. Therefore, the
goods are excluded from the seller's inventory and included in the buyer's inventory at the point of sale.
Bill and hold arrangement
A bill-and-hold arrangement is a contract (of sale) under which a seller bills a customer but retains
physical possession of the goods until it is transferred to the customer at a future date.
The goods are excluded from the seller's inventory and included in the buyer's inventory upon
billing, provided:
a. the reason for the bill-and-hold arrangement is substantive (e.g ., the customer has
requested for the arrangement);
b. the goods are identified separately as belonging to the customer;
c. the goods are available for immediate transfer to the customer; and
d. the seller cannot use the goods or sell them to another customer.
Lay away sale
Lay away sale is a type of sale in which goods are delivered only when the buyer makes the final
payment in a series of installments. This is different from a regular installment sale wherein goods are
delivered to the buyer at the time of sale.
The goods sold under a lay away sale are included in the seller's inventory until the goods are
delivered to the buyer when he makes the final installment payment. However, when significant payments
have already been made, thegoodsmaybe included in the buyer's inventory, provided delivery is probable.
Remember the following:
Type of Arrangement Included in the inventory of:
FOB shipping Buyer
FOB destination Seller
Consigned goods Consignor
Product financing & Pledge Borrower
Sale with unusual right of return Buyer, except when unsalable
Sale on trial (or approval) Seller
Bill and hold Buyer
Lay away Seller
ILLUSTRATION 5: Recognition of inventory
The records of ABC Co. show the following information:
a. Goods sold on installment basis whereby the buyer took possession but ABC
retained the legal title to protect the collectability of the sale price. 750,000
b. Goods sold but ABC agrees to repurchase at a future date. 680,000
c. Goods sold where large returns are predictable. 270,000
d. Goods received from another entity to be replaced with similar goods at a future date. 580,000
Requirement: How much are included in ABC Co.'s inventory?
Answer: 1,260,000 (680,000 product financing + 580,000 loan of inventory)
ILLUSTRATION 6: Bill and hold and Lay away
ABC Co. had the following transactions during the year:
● Purchased goods costing P10,000. Billing was received but delivery was delayed per ABC Co.'s
request. The goods are segregated and ready for delivery on demand.
● Purchased goods costing P25,000 on a lay away sale agreement. The goods will be delivered when
ABC Co. fully pays the purchase price. ABC Co. made total payments of P1,000 during the year.
Requirement: How much are included in ABC's inventory?
Answer: 10,000 - purchased on a "bill and hold" arrangement.
FINANCIAL STATEMENT PRESENTATION
All inventories are aggregated and presented on the statement of financial position under a single
line item captioned "Inventories." The breakdown (i.e., finished goods, work in process, and raw materials
and manufacturing supplies) is disclosed in the notes. Inventories are classified as current assets.
Accounting for Inventories
The major objectives of inventory accounting are:
a. Proper determination of periodic income through the recognition of appropriate costs that
are matched with revenue.
b. Proper representation of inventories recognized as assets in the financial statements.
Inventories are accounted for either through: (a) perpetual inventory system or (b) periodic inventory system.
Perpetual Inventory System
The perpetual inventory system is called as such because under this system, the "Inventory" account
(or "Merchandise inventory" account) is updated each time a purchase or sale is made. Thus, the "Inventory"
account shows a continuing or running balance of the goods on hand.
Moreover, records called "stock cards" and "stock ledger cards" are maintained under this system,
from which the quantities and balances of goods on hand and goods sold can be determined at any given
point of time without the need of performing a physical count of inventories.
All increases and decreases in inventory, such as purchases, freight-in, purchase returns, purchase
discounts, cost of goods sold, and sales returns are recorded in the "Inventory" (or "Merchandise inventory")
account. "Cost of goods sold" is also updated each time a sale or sale return is made.
The perpetual inventory system is commonly used for inventories that are specifically identifiable
and are relatively high valued, such as cars, machineries, furniture, and heavy equipment.
Periodic Inventory System
The periodic inventory system is called as such because under this system, the "Inventory" account
(or "Merchandise inventory" account) is updated only when a physical count of inventory is performed. Thus,
the amounts of inventory and cost of goods sold are determined only periodically.
Under this system, the business does not maintain records that show the running balances of
inventory on hand and cost of goods sold as at any given point of time. To determine this information, a
physical count of the quantity of goods on hand must be performed periodically (e.g., on a daily, weekly,
monthly, or annual basis). The quantity counted is then multiplied by the unit cost to get the balance of the
"Inventory" account.
This amount is then used to compute for the "Cost of goods sold," which is the residual amount in the
formula below.
Beginning inventory xx
Add: Net purchases (a) xx
Total Goods Available for Sale xx
Less: Ending inventory (physical count) (xx)
Cost of Goods Sold XX
(a)
"Net purchases" is computed as follows:
Purchases xx
Add: Freight-in xx
Less: Purchase returns (xx)
Less: Purchase discounts (xx)
Net purchases XX
"Freight-in" is an adjunct account (addition), while "Purchase returns" and "Purchase discounts" are
contra accounts (deductions), to "Purchases" when computing for "Net purchases."
● Purchases - the account used to record purchases of inventory under the periodic system.
● Freight-in (Transportation-in) - the account used to record the shipping costs incurred on
purchases of inventory under the periodic system.
● Purchase returns - the account used to record returns of purchased goods to the supplier.
● Purchase discounts - the account used to record cash discounts availed of on the purchased goods.
Under the periodic inventory system, purchases of inventory are debited to the "Purchases" account,
shipping costs are debited to the "Freight-in" account, purchase returns are credited to the "Purchase
returns" account, and purchase discounts are credited to the "Purchase discounts" account. No entry is made
to recognize cost of goods sold when inventory is sold.
Because the "Inventory" account is updated only after a physical count, prior to the count, the balance of
the inventory account represents the beginning balance or the balance from the last physical count.
Consequently, the balance of "Cost of goods sold" prior to a physical count is zero.
The periodic inventory system is commonly used for inventories that are normally interchangeable,
relatively low valued, and have a fast turnover rate, such as grocery items, medicines, electrical parts, and
office supplies.
ILLUSTRATION #7: Perpetual system VS Periodic system Journal Entries
Perpetual system Periodic system
(1) You purchased goods worth P10,000 on account.
Inventory 10,000 Purchases 10,000
Accounts payable 10,000 Accounts payable 10,000
(2) You paid shipping costs of P1,000 on the purchase above.
Inventory 1,000 Freight-in 1,000
Cash 1,000 Cash 1,000
(3) You returned damaged goods worth P2,000 to the supplier.
Accounts payable 2,000 Accounts payable 2,000
Inventory 2,000 Purchase returns 2,000
(4) You sold goods costing P5,000 for P2,000 to the supplier.
Accounts receivable 20,000
Accounts receivable 20,000
Sales 20,000
Sales 20,000
Cost of goods sold 5,000
No entry
Inventory 5,000
(5) A customer returned goods with sale price of P800 and cost of P200.
Sales returns 800 Sales returns 800
Accounts receivable 800 Accounts receivable 800
Inventory 200
Cost of goods sold 200 No entry
Notes:
● Under the perpetual inventory system, all increases and decreases in the goods on hand are recorded
through the "Inventory" account. Also, cost of goods sold is debited when inventory is sold and credited
when there is a sales return.
● Under the periodic inventory system, the increases and decreases in the goods on hand are recorded
through the purchases, freight-in, purchase returns, and purchase discounts accounts. Cost of goods sold
is not recorded.
Under the perpetual inventory system, the balances of inventory on hand and cost of goods sold are readily
determinable from the ledger. See T-accounts below:
Under the periodic inventory system, the balances of inventory on hand and cost of goods sold are
not readily determinable without performing first a physical count of the quantity of goods on hand.
Assume that a physical count revealed inventory on hand of 105 units costing P40 per unit. Using the
formula above, the inventory on hand and cost of goods sold under the periodic inventory system are
determined as follows:
Beginning inventory 0
Purchases (1) 10,000
Freight-in (2) 1,000
Purchase returns (3) (2,000)
Purchase discounts 0
Net purchases 9,000
Total goods available for sale 9,000
Ending inventory (105 units x P40 per unit) (4,200)
Cost of goods sold 4,800
Variation: Shortages/Overages
When an entity uses a perpetual inventory system, and a difference exists between the perpetual
inventory balance and the physical inventory count, there is inventory shortage or overage.
Assume in the illustration above that the physical count revealed a balance of P4,000. The inventory shortage
is determined as follows:
Balance per count 4,000
Balance per records 4,200
Difference- shortages (200)
The adjusting entry under perpetual system is as follows:
Loss on inventory shortage (or Inventory shortage or overage) 200
Inventory 200
Inventory shortage is charged to cost of goods sold if it is considered normal spoilage, (e.g .,
shrinkage and breakages within a tolerable limit set by management). If considered abnormal spoilage, the
shortage is charged as loss, e.g., theft, pilferage, and loss on casualty.
Note that an entity using the periodic inventory system does not report the account Inventory
shortage overage. The reason is that the periodic method does not have accounting records against which to
compare the physical count. As a result, the entity subsumes inventory overages and shortages in cost of
goods sold.
Perpetual system Periodic system
Increases and decreases in inventory during the
All increases and decreases in inventory are period are recorded in the purchases,"" "freight-in,’
recorded in the "Inventory" account. “purchase returns," and "purchase discounts"
accounts, as appropriate.
"Cost of goods sold" is debited when inventory is
"Cost of goods sold" is not recorded.
sold and credited for sales returns.
Physical count is performed only to check the Physical count is necessary to determine the
accuracy of the ledger balances. balances of inventory on hand and cost of goods
sold.
Requires the use of the following formula when
determining cost of goods sold:
BI XX
Does not require the use of any formula to
determine cost of goods sold because this Net purchases XX
information is readily available from the ledger. TGAS XX
EI (physical count) (XX)
COGS XX
Inventory Errors Under the Periodic Inventory System
Under the periodic system, cost of goods sold is a residual amount. Thus, it is affected by errors in
ending inventory, beginning inventory and net purchases. When cost of goods sold is misstated, so is the
profit for the period.
We will use the following guidance in determining the effects of inventory errors on profit under a periodic
system:
ENDING INVENTORY: PROFIT - DIRECT RELATIONSHIP
Ending inventory and Profit have a direct relationship. Direct relationship means that if ending
inventory is understated, profit is also understated.
From the main guidance above, we can also derive the following relationships:
● Beginning inventory & Purchases: Profit - Inverse relationship
● Ending inventory: Cost of goods sold - Inverse relationship
● Beginning inventory & Purchases: Cost of goods sold - Direct relationship
Inverse relationship means that if an account (e.g., ending inventory) is understated, the related account
(e.g., cost of goods sold) is overstated.
ILLUSTRATION 8: Inventory Errors
Ending inventory is understated by P5,000. The effects of the errors are analyzed as follows:
Should be Erroneous Effects
Inventory, beg. 10,000 10,000
Net purchases 100,000 100,000
Total goods avail. for sale 110,000 110,000
Inventory, end. (20,000) (15,000) understated by P5,000
Cost of goods sold 90,000 95,000 overstated by P5,000
Net sales 220,000 220,000
Cost of goods sold (90,000) (95,000)
Gross profit 130,000 125,000 understated by P5,000
If a contra-purchases account (i.e., purchase returns and discounts) is misstated, its effect would be
the reverse of the effect of the purchases account. For example, if purchase returns is understated, the effect
on profit is also understatement, a direct relationship - the reverse of the effect of purchases on profit which
is inverse relationship.
If an adjunct-purchases account (i.e., freight-in) is misstated, its effect would be the same as the
effect of purchases account. For example, if freight-in is understated, the effect on profit is overstatement - the
same as the effect of purchases on profit which is inverse relationship.
Errors in purchases account (and contra and adjunct accounts) affect only cost of goods sold and
profit. They do not affect ending inventory because ending inventory is determined independently through
physical count.
The above-mentioned relationships are not applicable under a perpetual inventory system because
cost of goods sold under perpetual inventory is determined independently of the physical count of ending
inventory.
Life Application:
Physical Inventory vs. Cycle Counting
A physical inventory is a comprehensive, often annual count of the stock a company has on-hand. Cycle
counting is a more systematic method of counting portions of the stock. Companies sometimes conduct cycle
counting as often as daily, and it’s advisable to perform them at least quarterly.
Physical inventory is not always automated. Cycle counting is typically automated, however. Automation
streamlines the inventory process overall, whether physical or cycle counts. It saves time, eliminates most
human error, and enables real time and useful data. The most accurate inventory counts are those that
combine cycle counts with automation.
Summary:
● Inventories are assets that are held for sale in the ordinary course of business activities.
● Inventories are recognized when they meet the definition of inventory and they qualify for
recognition as assets, such as when legal title is obtained by the buyer from the seller.
● The two inventory systems are: (1) Perpetual system and (2) Periodic system.
● If ending inventory is overstated, Profit is also overstated.
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References: INTERMEDIATE ACCTG 1A [by: Millan, Zeus Vernon B. (2021)]
https://www.iasplus.com/en/standards/ias/ias2
https://www.ifrs.org/issued-standards/list-of-standards/ias-2-inventories/
https://www.netsuite.com/portal/resource/articles/inventory-management/physical-counts-
inventory.shtml
