what the new accounting treatment of evaluation inventory according to IAS?

Answer 1

Inventories are covered by IAS 2

Inventories include assets held for sale in the ordinary course of business (finished goods), assets in the production process for sale in the ordinary course of business (work in process), and materials and supplies that are consumed in production (raw materials). [IAS 2.6]

Inventories are required to be stated at the lower of cost and net realisable value (NRV). [IAS 2.9]

Measurement of Inventories

Cost should include all: [IAS 2.10]
* costs of purchase (including taxes, transport, and handling) net of trade discounts received
* costs of conversion (including fixed and variable manufacturing overheads) and
* other costs incurred in bringing the inventories to their present location and condition

Inventory cost should not include: [IAS 2.16-2.18]
* abnormal waste
* storage costs
* administrative overheads unrelated to production
* selling costs
* foreign exchange differences arising directly on the recent acquisition of inventories invoiced in a foreign currency
* interest cost when inventories are purchased with deferred settlement terms.

The standard cost and retail methods may be used for the measurement of cost, provided that the results approximate actual cost. [IAS 2.21-22]

For inventory items that are not interchangeable, specific costs are attributed to the specific individual items of inventory. [IAS 2.23]

For items that are interchangeable, IAS 2 allows the FIFO or weighted average cost formulas. [IAS 2.25] The LIFO formula, which had been allowed prior to the 2003 revision of IAS 2, is no longer allowed.

The same cost formula should be used for all inventories with similar characteristics as to their nature and use to the enterprise. For groups of inventories that have different characteristics, different cost formulas may be justified. [IAS 2.25]