As per AS-2 this standard should be applied in accounting for inventories other than
1. work-in-progress arising under constrution contracts, including directly related service contracts (see Accounting Standard (AS)-7, construction contracts).
2. work-in-progress arising in the ordinary course of business of service providers.
3. shares, debentures and other financial instruments held as stock-in-trade.
4. producer's inventories of livestock, agricultural and forest products and mineral oils, ores and gases to the extent that they are measured at net realisable value in accordance with well established practices in those industries.
5. work-in-progress arising in the special course of business of service providers.
Select the correct answer:
A. 1, 2 and 3
B. 1, 2, 3 and 4
C. 2, 3, 4 and 5
D. 3, 4 and 5
Answer: Option B
This Question Belongs to Commerce >> Accounting
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