About normal capacity

Dear all Can someone tell me how do you define normal capacity of IAS 2? In IAS 2, it said that normal capacity is the production expected to be achieved on average over a number of periods or seasons under normal circumstances. I am wondering how to caculate the normail capacity? ex: one machine can [...]

By |December 15th, 2008|IFRS|0 Comments

Reversal of a previuos inventory writedown

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 speci...

By |December 14th, 2008|AUDIT, IAS 2, IAS 8, IFRS, TAX|0 Comments

IAS 2 Inventories

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 […]

By |August 28th, 2008|IAS 2|0 Comments

Inventory Write-Down

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 […]

By |August 28th, 2008|IAS 2|0 Comments