PRC-1 · Chapter 7 · Question 20 of 100
Which of the following items is EXCLUDED from the scope of IAS 2 Inventories?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Financial instruments and biological assets related to agricultural activity.
Explanation
IAS 2 specifically excludes financial instruments (covered by IFRS 9) and biological assets related to agricultural activity and agricultural produce at the point of harvest (covered by IAS 41) from its scope.
More IAS 2: Inventories MCQs
- Q22Which of the following definitions correctly describes 'Prime Cost'?
- Q23When a business records a write-down of inventory to Net Realizable Value, where is this expense initially recognized?
- Q24If an entity accidentally overstates its closing inventory value, what is the direct impact on the financial statements for that year?
- Q25Which of the following situations dictates that raw materials should NOT be written down below their cost?
- Q26How are trade discounts treated when determining the cost of inventory?