A) International Accounting Standard 2 aims at addressing different aspects related to inventories maintained by any business. It requires inventories to be stated in the financial accounts at lower of cost or net realizable value. The standard even suggests the methods for valuation of inventory.

Required:

Explain the objective of IAS 2. The standard also suggests the use of an inventory valuation method Specific Identification Method in certain cases. Discuss this method in detail with the help of relevant examples.