IAS 2 Inventories


Accounting requirements relating to inventories are specified in the IAS 2 Inventories standard. It tells us, among others, what the definition of an inventory is and what should and should not be included in the cost of an inventory at initial recognition. According to the standard subsequent measurement shall be at the lower of net realisable value and cost.  

Net realisable value, cost of purchase, cost of conversion, weighted average cost method, FIFO method, standard cost method, so many measurement methods and concepts. This course explains these concepts through practical examples and interim tests to enhance understanding.

This course will enable you to:

  • understand the concept and definition of inventory
  • identify items to be included in the cost of inventory
  • apply the definition of overheads
  • identify rules for recognition and derecognition of inventories
  • define measurement rules
  • distinguish different methods of inventory valuation (standard cost, weighted average cost, FIFO method)
  • calculate the provision (write-down) against inventories and reversal of provision
  • review IAS 2 standard's disclosure requirements


Further information:

  • Training hours:50 minutes 
  • Language: English, Hungarian, Serbian, Croatian

This e-learning course is part of an e-learning series designed by PwC Academy Hungary which aims to provide a comprehensive overview of the application of IFRS (IAS) standards to finance and accounting experts who are already familiar with fundamental (local) accounting and reporting processes.


Required fields are marked with an asterisk(*)

By submitting your email address, you acknowledge that you have read the Privacy Statement and that you consent to our processing data in accordance with the Privacy Statement (including international transfers). If you change your mind at any time about wishing to receive the information from us, you can send us an email message using the Contact Us page.

Contact us

Ana Cetkovic

Ana Cetkovic

PwC's Academy Coordinator, PwC Montenegro

Tel: +382 67 643 304