Initial:Purchase price,Cost of conversion,Other direct cost
Subsequent:Lower of cost and NRV
Cost formula:
-Actual unit cost
-First in, first out(FIFO)
-Weighted average cost(AVCO)
Impairment at EACH year end
NRV of finished goods=Estimated selling price of finished goods-estimated selling expense
NRV of work-in-process=Estimated selling price of finished goods-estimated cost of completion-estimated selling expense
NRV of raw materials=Current cost of raw materials
Dr P/L
Cr Inventory
Disclosure
The accounting policies adopted in measuring
inventories,including the cost formula used.
The circumstances or events that led to the reversal of a
write-down of inventories.
The carrying amount of inventories pledged as security
for liabilities.
