IAS 2 Inventories Explained | Cost vs NRV | Practical Example

In this video, we explain IAS 2 – Inventories using a simple, practical example of a clothing business. Learn how to calculate inventory cost, determine Net Realisable Value (NRV), and apply the lower of cost and NRV rule step by step. 📘 What you will learn: What IAS 2 Inventories means How to calculate inventory cost, including purchase price and freight-in Which costs are excluded from inventory cost What Net Realisable Value (NRV) means How to calculate NRV with a practical example How to value closing inventory at the lower of cost and NRV How to calculate an inventory write-down The journal entry for an inventory write-down 📊 Practical example: Follow ABC Clothing Store as we calculate inventory cost, work out NRV, determine closing inventory value, and understand the accounting treatment of an inventory write-down. This video is useful for ACCA students, accounting and finance professionals, commerce students, and anyone learning IFRS accounting standards. If you find this video helpful, please like, share, and subscribe to Finance Made Simple for more practical accounting, IFRS, and finance tutorials. 📚 Official IAS 2 reference: https://www.ifrs.org/issued-standards... #IAS2 #Inventories #IFRS #ACCA #Accounting#accountingmadesimple#financemadesimple#tanujtalwaracca