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 produce 10 finish good in 8 hours, then, the
factory works 8 hours per days and five days per week, so the normal
capacity will be
10 *8*4=320 ?
or the enterprise estimate that they can sell 250 finish goods per
months in normal circumstances. so, …

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…

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

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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

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