{"id":52415,"date":"2024-04-15T23:39:02","date_gmt":"2024-04-15T23:39:02","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=52415"},"modified":"2024-04-15T23:39:02","modified_gmt":"2024-04-15T23:39:02","slug":"the-accounting-standard-no-2-of-the-international-accounting-standards-committee-is-on-the-subject-of","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/the-accounting-standard-no-2-of-the-international-accounting-standards-committee-is-on-the-subject-of\/","title":{"rendered":"The Accounting Standard No. 2 of the International Accounting Standards Committee is on the subject of"},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a98181ab6a5b\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"true\">\r\n                    Valuation and presentation of inventories                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"false\">\r\n                    Depreciation Accounting                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"false\">\r\n                    Information to be disclosed in financial statements                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"false\">\r\n                    None of the above                <\/div>\r\n                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is: A. Valuation and presentation of inventories.<\/p>\n<p>Accounting Standard No. 2 of the International Accounting Standards Committee is on <div class=\"telegram-channel-container\">\r\n        <a href=\"https:\/\/t.me\/pscnotes2025\" target=\"_blank\" class=\"telegram-channel-button\">\r\n            <span class=\"telegram-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 496 512\">\r\n                    <path fill=\"white\" d=\"M248,8C111,8,0,119,0,256s111,248,248,248s248-111,248-248S385,8,248,8z M362,177L320,367c-3,14-10,18-20,14l-56-41l-27,26 c-3,3-5,5-10,5l4-63L323,196c5-5-1-7-8-3l-98,62l-42-13c-9-3-10-9,2-14l162-63C351,160,365,164,362,177z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Join Our Telegram Channel\r\n        <\/a>\r\n    <\/div> the subject of valuation and presentation of inventories. It sets out the principles for the valuation and presentation of inventories in the financial statements of an entity. The standard applies to all inventories held by an entity, except for:<\/p>\n<ul>\n<li>Work in progress <div class=\"youtube-subscribe-container\">\r\n        <a href=\"https:\/\/www.youtube.com\/channel\/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1\" target=\"_blank\" class=\"youtube-subscribe-button\">\r\n            <span class=\"youtube-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 576 512\">\r\n                    <path d=\"M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Subscribe on YouTube\r\n        <\/a>\r\n    <\/div> arising under construction contracts;<\/li>\n<li>Financial instruments;<\/li>\n<li>Biological assets related to agricultural activity;<\/li>\n<li>Inventories held by an entity for sale in the ordinary course of business that are measured at fair value less costs to sell in accordance with IFRS 13 Fair Value Measurement; and<\/li>\n<li>Inventories of an entity that are measured at net realisable value in accordance with IAS 41 Agriculture.<\/li>\n<\/ul>\n<p>The standard requires an entity to measure its inventories at the lower of cost and net realisable value. Cost is the amount of expenditure incurred in bringing the inventory to its present location and condition. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.<\/p>\n<p>The standard also requires an entity to disclose the following information in its financial statements:<\/p>\n<ul>\n<li>The accounting policies adopted for the valuation of inventories;<\/li>\n<li>The cost of inventories recognised as an expense during the period;<\/li>\n<li>The amount of any write-down of inventories recognised as an expense during the period and the amount of any reversal of such write-downs; and<\/li>\n<li>The carrying amount of inventories at the end of the period.<\/li>\n<\/ul>\n<p>The standard also provides guidance on the practical application of its requirements.<\/p>\n<p>Option B, Depreciation Accounting, is incorrect because the standard does not deal with the subject of depreciation accounting. Depreciation accounting is the process of allocating the cost of a tangible asset over its useful life. The standard does not deal with this subject because it is covered by other International Financial Reporting Standards (IFRSs).<\/p>\n<p>Option C, Information to be disclosed in financial statements, is incorrect because the standard does not deal with the subject of information to be disclosed in financial statements. This subject is covered by other IFRSs, such as IAS 1 Presentation of Financial Statements.<\/p>\n<p>Option D, None of the above, is incorrect because the standard does deal with the subject of valuation and presentation of inventories.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Join Our Telegram Channel Subscribe on YouTube<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Accounting Standard No. 2 of the International Accounting Standards Committee is on the subject of<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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