According to IAS 2 inventories include assets:
A)such as service contracts arising under construction contracts.
B)held over the long term for use in the production process.
C)such as financial instruments.
D)held in the process of production, preparation or conversion for sale.

Question

Quizplus · Accepted Answer

Inventories are defined in IAS 2 as assets that are held in the process of production, preparation, or conversion for sale. Therefore, option D is the correct choice. Options A, B, and C are not correct as service contracts arising under construction contracts, assets held over the long term for use in the production process, and financial instruments are not considered as inventories according to IAS 2.

According to IAS 2 Inventories Include Assets