Under IAS 2 Inventories, Items of Inventory That Are Used

question 14

Multiple Choice

Under IAS 2 Inventories, items of inventory that are used by business entity as components in a self-constructed property asset are required to be:

• A) aggregated into the 'cost of sales' expense in the period in which the items are used;
• B) expensed directly into equity in the period in which the items are used;
• C) capitalised and depreciated;
• D) added to a 'property construction' provision account.

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Definitions:

Treasury Reserves

Funds or assets held by a country's treasury to manage the economy’s money supply, stabilize currencies, or finance emergencies.

Comparative Advantage

The economic principle that nations should produce and export goods in which they have the lowest relative cost of production.

Western European Countries

Nations located in the western part of Europe, often characterized by developed economies, democratic governance, and high living standards.

Foreign Oil

Oil that is sourced from countries other than one’s own, often importing to meet domestic demand.