According to AASB 102 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

AASB 102 defines inventories as assets that are held in the process of production, preparation or conversion for sale. Therefore, option D is the correct choice. Option A refers to service contracts which do not meet the definition of inventories. Option B refers to property, plant and equipment which are not considered as inventories. Option C refers to financial instruments which are not considered as inventories either.

According to AASB 102 Inventories Include Assets