Inventories (IAS 2/AASB 102)

Corporate Reporting Insights

BDO's monthly newsletter, Corporate Reporting Insights, keeps you up to date with the latest Australian and global developments in corporate financial and sustainability reporting.

• What to disclose about carbon credits in your financial statements (November 2024)
• Accounting for discounted and in-kind inventories received by not-for-profit entities (November 2024)
• Accounting for the sale of carbon credits generated by carbon abatement activities (September 2024)
• Accounting for carbon credits generated by carbon abatement activities (August 2024)
• Accounting for voluntary purchases of carbon credits (July 2024)
• Latest IFRIC agenda decisions – Costs necessary to sell inventories & non-going concern financial statements​ (July 2021)
• Blind Freddy – Common errors when accounting for inventories – AASB 102 – Part 3 (November 2017)
• Blind Freddy – Common errors when accounting for inventories – AASB 102 – Part 2 (October 2017)
• Blind Freddy - common errors when accounting for inventories - AASB 102 - Part 1 (September 2017).

BDO Global IFRS Resources

The following publications have been produced by the BDO Global IFRS group:

► IFRS at a Glance

A high level overview of International Financial Reporting Standards (IFRSs), including International Accounting Standards and Interpretations.

• IAS 2 Inventories
• IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine.

► IFR Bulletins

Focus on latest developments in international financial reporting.

• Effects of climate-related matters on financial statements​ (IFRB 2020 14).

IFRIC agenda decisions

IFRS Interpretations Committee (the Committee) agenda decisions are those issues that the Committee decided not to take onto its agenda. Although not authoritative guidance, in practice they are regarded as being highly persuasive, and all entities reporting under IFRS should be aware of these decisions because they could impact the way particular transactions and balances are accounted for. Agenda decisions on this topic include:

• Costs necessary to sell inventories (June 2021) and eLearning​ and FAQ
• Cryptocurrencies (June 2019) and eLearning and FAQ
• Commodity loans (March 2017) and FAQ
• Prepayments in long-term supply contracts (November 2015) and FAQ
• Core inventories (November 2014) and FAQ
• Discounts and rebates (November 2004) and FAQ
• Consumption of inventories by a service organisation (public sector) (March 2004) and FAQ
• Inventories – cash discounts (August 2002) and FAQ.

Online training resources

Improve your knowledge of accounting standards by purchasing our online training resources on a variety of financial reporting topics. Resources available on this topic include:

• A seminar – a pre-recorded two-hour webinar that provides a high-level overview of the accounting standard, as well as a question and answer case study booklet
• eLearning – a self-paced interactive web-based eLearning module that provides an in-depth understanding of the key aspects of the accounting standard and requires participants to read and answer questions relating to the content.