Is it fair to value inventory at updated standard costs even if the inventory item was manufactured at a time when standard costs were much lower?
I experienced this issue in 1995
It is fair and possible but all depends on the control and policies you have
IAS 2 allows you to use standard cost valuation for inventory in final reporting if standards approximate to actuals. As you well say below the standards will always differ a lot to actuals particularly now (and so was the case in 1995) because of …