Document ID: chunk:federal_register_of_legislation:F2022C00496:body:0:p2
Version: federal_register_of_legislation:F2022C00496
Segment Type: other
Provision Reference: 
Character Range: 2977–6066

102 is to be read in the context of other Australian Accounting Standards, including AASB 1048 Interpretation of Standards, which identifies the Australian Accounting Interpretations, and AASB 1057 Application of Australian Accounting Standards.  In the absence of explicit guidance, AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors provides a basis for selecting and applying accounting policies.

Comparison with IAS 2
AASB 102 Inventories as amended incorporates IAS 2 Inventories as issued and amended by the International Accounting Standards Board (IASB).  Australian‑specific paragraphs (which are not included in IAS 2) are identified with the prefix "Aus".  Paragraphs that apply only to not-for-profit entities begin by identifying their limited applicability.

Tier 1
For-profit entities complying with AASB 102 also comply with IAS 2.
Not-for-profit entities' compliance with IAS 2 will depend on whether any "Aus" paragraphs that specifically apply to not-for-profit entities provide additional guidance or contain applicable requirements that are inconsistent with IAS 2.

Tier 2
Entities preparing general purpose financial statements under Australian Accounting Standards – Simplified Disclosures (Tier 2) will not be in compliance with IFRS Standards.
AASB 1053 Application of Tiers of Australian Accounting Standards explains the two tiers of reporting requirements.

Accounting Standard AASB 102

The Australian Accounting Standards Board made Accounting Standard AASB 102 Inventories under section 334 of the Corporations Act 2001 on 24 July 2015.

This compiled version of AASB 102 applies to annual periods beginning on or after 1 January 2022.  It incorporates relevant amendments contained in other AASB Standards made by the AASB up to and including 20 December 2021 (see Compilation Details).

Accounting Standard AASB 102
Inventories

Objective
1 The objective of this Standard is to prescribe the accounting treatment for inventories. A primary issue in accounting for inventories is the amount of cost to be recognised as an asset and carried forward until the related revenues are recognised. This Standard provides guidance on the determination of cost and its subsequent recognition as an expense, including any write-down to net realisable value. It also provides guidance on the cost formulas that are used to assign costs to inventories.

Scope
2 This Standard applies to all inventories, except:
(a) [deleted]
(b) financial instruments (see AASB 132 Financial Instruments: Presentation and AASB 9 Financial Instruments); and
(c) biological assets related to agricultural activity and agricultural produce at the point of harvest (see AASB 141 Agriculture).
Aus2.1 Notwithstanding paragraph 2, in respect of not-for-profit entities, this Standard does not apply to work in progress of services to be provided for no or nominal consideration directly in return from the recipients.
3 This Standard does not apply to the measurement of inventories held by:
(a) producers of agricultural and forest products, agricultural produce