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INVENTORY, BORROWING COSTS - Coggle Diagram
INVENTORY
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Inventory relates to goods that the business is going to sell in the ordinary course of business.
IAS 2 states that inventory must be measured at the lower of cost and net realisable value
Cost the includes in inventory:
Materials, labour, production overheads.
NB Cost excludes: Abnormal waste, storage costs, administration overheads, selling costs
BORROWING COSTS
Recognition and initial measurement
- Items of PPE are tangible items that are held for use in the production or supply of goods or services, and are expected to be used for more than one period.
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Initial measurement at cost which includes is purchass price this price includes duties and non refundable taxes after deducting trade discounts
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