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ICDS II shall be applied for valuation of inventories, except:
Sl. No. | Basis | ICDS II | AS 2 |
1. | Work in progress | ICDS II does not deal with Work-in-progress which is dealt with by any other ICDS. It does not specifically provide for work in progress arising in business of service provider | Work in progress arising in the ordinary course of business of service providers is not covered by AS |
2. | Machine Spares | ICDS II does not deal with machinery spares, which are dealt with by ICDS V on tangible fixed assets | Stores and spares are one of the classification of inventories. AS 2 does not specifically exclude machine spares |
3. | Borrowing cost | It includes interest and other borrowing cost in inventory cost, if they satisfy the condition of ICDS IX on borrowing cost | It does not include interest and other borrowing cost to the cost of inventory |
4. | Value of opening inventory | Provides for the valuation of opening inventory | Does not provide for the valuation of opening inventory |
5. | In case of dissolution | Cost of inventory will be valued at net realizable value | Does not specifically provide for the valuation of inventory in case of dissolution |