When it is possible to establish an allowance for writing down inventory and when it isn’t?

Good luck For All,
Kindly Let me Know Is Any Indication of under/ over absorbed production overheads’ treatment in IFRSs. If yes Then What And In which one. If Not Then What Is The Proper treatment?
Regards
Naveed

Dears,
what are the adjusting enteries when inventry is recorded under perpatual system & when at the year end period count is performed & descripencies are found ehither favourable Or Unfavourable.
Best regards:

A company yet to start production had bought some raw materials necessary for production. But the production has been delayed. In the mean time the market value of raw materials has came down. what should be the accounting treatment for the raw material at year end ?
should it be valued at current market price and difference be treated as pre-operative expense or some other treatment should be given ?

Dear All
Kindly feed me back regarding the reversal of any previuos writedown
that had been made in a previuos period. Is it possible to reverse a
wirte down for inventory made in 2007 to be reversed in 2008
Noting that I couldn’t reach any specific paragraph in the standards
relatated to this issue.
and how this could be made via entries.
But I think if it is possible to reverse wirtdown made in 2007 to be
reversed in 2008, it may distort results over accounting periods.
Thanks in advance for your prompt reply.

Hesham,
The writedown to inventory in 2007 …

Dear all,

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?
 
Regards,
Grace

Hi Divine
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 …

Hello,
 

If a company asks a third party to construct a fixed asset and at the end of the year, the fixed asset is not complete, but you have a statement of the costs incurred, would you capitalize the costs incurred under Construction in Progress with counterpart in accruals. Or would you record an entry only when it has been delivered to the company?
 
What IFRS would be applicable?
 
Thanks,
Isabelle

IFRS 16 would be applicable “Plant , Property and Equipemnt”
 
Recognisation -
Items of property, plant, and equipment should be recognised as assets when it is probable …

Hello all,
Our company is operating in aircraft maintenance, repair and overhaul (MRO) sector. Wages are paid to the direct&indirect blue collar employees on monthly basis, regardless of how much man/hour spent. But overtime is paid for the excess time charged.
Regarding the classification of wages paid to the blue collar as fixed and variable, what do you think the classification will be? Should we assume that these wages are related with the level of production, and totally assumed as variable, although the payment is fixed on monthly basis; or only the overtime paid is …

Can anyone help me to understand the IFRS – IAS 2 -
1. Inventory – wrtie-down and write-up of inventory cost??
2. IAS 2 – Does this apply to work-in-process??
Thanks for your assistance.
Ray

Hi all,
Need your help on this. I am trying to look into my Inventory valuation in my Accounting system hence if you have any suggestions pls do reply me.
Currently we are using Navision system and if any of you are using the same system it will be good if I can hear your feedback because I am trying to get my vendor to do NRV valuation for my Inventory and they give me negative answers.
In addition we are using FIFO method but in the system it doesn’t calculate it this …

Dear All Recently our currency in Zimbabwe was re-denominated by 10 000 000 000 factor, prior to this we imported stocks and converted them at prevailing stipulated rates as at that period. After the re denomination we have stocks at 0 value. According to standards is it possible to re value stocks so that we will be able to reflect true inventory valuation and cost of sales.

I appreciate your assistance
 Regards
 
 

Hi Antonello
I hope you can answer some of my questions related to IFRS – inventory write-down.
Case:
Inventory unit cost was $ 15.00 purchase price
Sales price for $35.00 per unit
Total unit at year-end – on hand quantity 1000 units
Forecast 100% stocks classified as non-salesable.
Reserve set up at the end of year was $ 15,000.00
Third party disposition for 1000 units – sales price drop to $10.00 per unit – $10,000.00
What is the accounting treatment for the above transaction under IFRS?
Your input is much appreciated.
Thanks,
Raymond

Hi: Good morning: Henk:
Would you be kind to let me know the IFRS – IAS 2 concerning to ret realizable value and write-off: 1. How to handle the declined value of inventory stocks? 2. What is the correct procedure to write-down of damaged or obsolete items?
Thanks for your assistance.
Raymond