AS 2

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Saurabh (Querist)
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23 September 2009 As per AS 2,
definition of inventories includes:
"assets in the form of materials or suppliers to be consumed in the production process or in rendering services."

what do me mean by this? please explain comprehensively with an example if possible.

CA Puneet Jethliya

CA Puneet Jethliya (Expert)
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24 September 2009 please check the definition :
it includes supplies not supplier as written in your query.

all types of material or stock-in-hand which used by mfg. in their production process regularly then can be part of inventory and AS-2 applied.