VALUATION DURING INVENTORY COUNT (IAS 2)
Posted: 01 Jan 2021, 17:24
Hi Everyone,
I have a query related to the IAS 2 (Inventory).
Currently we have applied FIFO Method on the basis of Product Expiry Date for the inventory movement in our Warehouse. But lets suppose if we do a Cycle Count of Inventory and found some of the products aren't appearing/available in the Inventory Software, so how can we re-enter those homogenous products (interchangeable inventory) if we are unable to trace their exact cost (i.e. exact cost on which we have purchased those items).
Do you think that it will be appropriate in terms of IFRS/IAS if we re-enter those products on the basis of Weighted Average? Or do you think it will be appropriate to re-enter those products on Last Cost Updated in the Inventory Software?
Please suggest the appropriate method considering the fact that we are currently on FIFO Method. So I am confused that is it appropriate to use the Weighted Average meanwhile the FIFO just to enter some of the products back in the Inventory Software.
Waiting for the response.
I have a query related to the IAS 2 (Inventory).
Currently we have applied FIFO Method on the basis of Product Expiry Date for the inventory movement in our Warehouse. But lets suppose if we do a Cycle Count of Inventory and found some of the products aren't appearing/available in the Inventory Software, so how can we re-enter those homogenous products (interchangeable inventory) if we are unable to trace their exact cost (i.e. exact cost on which we have purchased those items).
Do you think that it will be appropriate in terms of IFRS/IAS if we re-enter those products on the basis of Weighted Average? Or do you think it will be appropriate to re-enter those products on Last Cost Updated in the Inventory Software?
Please suggest the appropriate method considering the fact that we are currently on FIFO Method. So I am confused that is it appropriate to use the Weighted Average meanwhile the FIFO just to enter some of the products back in the Inventory Software.
Waiting for the response.