SKK 04 Inventories – improved

Standards National to Accounting to Improved

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SKK 4 Inventories

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Standard National I Accounting No. 4 – Inventories – I Improved

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ContentsParagraphs

Objective And Basics E Preparations 1-3

Field E Application 4-5

Definitions Main 6-7

Recognition And RATING 8- 29

Recognition in accounting 8 – 9

Measurement Initial 10-12

Assessment next 13 -22

Depreciation i inventory 23- 28

Registration cancellation 29 – 30

Presentation E Inventory In Mirrors Financial 31 – 33

NOTES Explanatory 34

Date E Introduction In Application 35

Comparison with International Financial Reporting Standards for Entities Economic To Little And To Middle (SNRF For Never mind) 36

The Basis of Conclusions Guide For Implementation E SKK 4

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Objective And Basics E Preparations

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Objective i Standard National to Accounting 4 Inventories („SKK four inches or „Standard" i to extract and the i approved from Council

The National Accounting Standard, issued by the Ministry of Finance, sets forth the principles for recognition, measurement, and valuation of the subsequent inventory, as well as the necessary explanations in the financial statements prepared in accordance with Standards National to Accounting. These standard based on in principles e accounting and the reporting to accepted in scale international, requirements e general to to whom are described in The law number. 9228 “For Accounting and the Mirrors

Financially, published in April 2004, i changed.

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SKK 4 supported in the standard International to Accounting, South Korean 2 Inventories. SKK 4 is changed for to you done i

comparable to Section 13 – Inventories of the International Financial Reporting Standards for Small Entities and of Appendix (SNRF for NVM). A corresponding table of the Standard's paragraphs with SNRF for NVM paragraphs is provided. in paragraph 36. For cases not directly addressed by IFRS 4 or any other IFRS, management of economic unit It must, with the approval of the National Council of Accountancy, implement a policy that ensures a true and fair view of the financial position, financial performance, and changes in cash flows monetary and the to capital to of the unit economic as required in under 9 to to the law number. 9228 “For Accounting and the Mirrors

Financially, to extract in April 2004, i changed.

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Mirrors financial will to are prepared on the base e of the concept to materiality. Standards National to Accounting there were no must to

are enforced for voices non-material. Concept of materiality is defined and the clarified in paragraphs 40 to ninety of SKK 1.

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Field E Application

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This Standard will applies for to all Inventories with exclusion to:

Assets Organic and the Agreements Concessionaire)

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This Standard there were no applies for inventories e held from:

(a) producers e products agricultural and the Forest-like, of production agricultural after harvest and the to minerals and the products minerals, in cases when them are graduation with the value rightly diminished with costs for sale through profit apple loss (see

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SKK 13 Assets Organic and the Concession Agreements),

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(b) brokers and the agents e sale of mallrave that i morning inventories with the value e right reduced with costs e sale through profit or loss (see SKK 3 Instruments Financially).

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Definitions Main

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To me down are given some definitions main to used in this standard:

Inventories are assets:

Value accountant is the value with it which one is known an active in the mirror e financial position.

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Inventories e units producer are made up of from subjects e before and the materials for consumption, work in process and the products e

finished goods nearly ready for sale, purchased goods held for resale with little or no need for alteration, which are inventory. typical for trading units. Real estate purchased for resale should be recognized as inventory, while those purchased for use… in the process of production or for goals administrative, must to get to know each other like active long-term materials.

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Recognition And Assessment

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Recognition in Accounting

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Initially, unit economic must to know inventory then when e has under control, to wait benefits economic from of him and the

cost e of him can to It is estimated with credibility.

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Recognition e inventories must to be done usually at the moment e benefit.

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Measurement primary, initial

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Inventories are initially measured at cost. The cost of inventory includes the cost of all materials directly related to the production as well as the cost of converting these materials into finished products. Direct material costs include, except price to purchase, and to all costs e other that are needed for to to behave inventory in the situation and the

location existing.

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The cost e subjects to before, materials to consumption, of the land and the buildings to green for resale, consists of from price i purchase,

expenses e transportation, taxes e import, storage, discounts and the add-ons merchant and the to other expenses to other to similar (taxes non-refundable).

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An economic unit may purchase inventories under deferred‐payment terms. In some cases, the agreement effectively contains an element financing to unannounced, for for example, a difference between price to purchase in conditions e lending normal and the plural of redemption of postponed. In these cases, difference is known as spending interest during of the period financing and the there were no i

is added costs of of the inventory.

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Assessment i later on

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After knowledge, an unit economic must to measure inventory with the value to me to low between costs and the price to appreciated to sale

reduced with costs for to you finished and the sold.

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For them goods that there were no are to interchangeable in markets to normal apple that are to special for projects specific, cost must

to be determined on the basis of the specific identification method. The cost method based on specific identification is not Suitable for homogeneous products such as raw materials used in production and purchased replacement parts. frequently and at varying prices. To determine the cost of such an inventory, either the weighted average must be used or method “Introduction e first, exit e money” (First In, First Out). For him calculated the cost e of inventories that have the same nature and the use for

the economic unit, the same formula must be used. However, for inventories of different nature or use, for calculation e costs can justified use i formulas to different from them to mentioned above.

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Units economic that are taken with production products must to define the cost e of the inventory to theirs. The cost e of the inventory

must include all purchase costs, conversion/production costs, and costs associated with bringing inventory into conditions and the location existing. Method to based on in the cost directly where to all expenses indirectly to enter in Period expenses are not allowed. Indirect costs must be charged to inventory. regardless of how they are classified by unit economic.

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Examples to expenses that there were no can to included at cost e of the inventory are given below:

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Expenditures indirectly fix to of production calculate like part e costs of of the inventory while to take for base the capacity normal to

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of production. Capacity normal is the level of of production that an unit economic to wait to I arrive on average during an series periods

accountant. Variable indirect production costs are calculated based on actual production. An economic unit It must allocate the unallocated indirect expenses to the period's expenses, such as expenses of unloaded for cause to change to exploitation current of capacity from capacity i complete.

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Capitalization i expenses to storage, i.e. inclusion e their in the cost e of the inventory, in place that to Loading in expenses, is i adaptable only if storage is i necessary during of the process to of production i.e. storage i

in the meantime before that to passed in an phase to further production.

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Products that are produced of together, i.e. in an process to only production, They are known. like by-products. They expenses

The production carried out from the moment these products become individually identifiable can be linked. easily and directly with the product and can consequently be distributed across individual products in a way that directly. Production costs incurred before this point must be allocated among the individual products. in basis of a reasonable method and suitable.

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Allocating expenses based on the relative value of sales of joint products is one of the methods for distribution of common expenses. Common expenses are distributed based on the relative value of sales. products, i.e. in ratio with the value e their to sales, in the moment when these products are done individually to identifiable, i.e., at the point of separation. This method has practical value when the co-products have equal profits, but does not is e appropriate when products have differences to considerable in profit, after distribution there were no will to him reflected in

way to right costs that i meet of every product.

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By-products are products to joint with an value relatively to unimportant, and the assessment i their in way to

similar with that to of the product main, there were no is i suitable. One alternative e appropriate is that expenses e by-products in an a lot to equal with the value e their neto of sale to are discounted from cost e of the product main.

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One unit economic can to to use technique to like that like method e costs standard, method e prices with minority or to

the most recent purchase price to measure the cost of inventories if The result from using these methods approximates with cost. Costs standard take into account the normal levels of materials and the supplies, work, effectiveness and use to capacities. They are reviewed Regularly and, if is e If necessary, they are reviewed. while was initiated by conditions current.

The retail method measures cost by subtracting the inventory's selling price by the appropriate percentage. margin gross.

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Depreciation i of the inventory

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Inventories must to him submit of the test to devaluation in the date e reporting.

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Request for the assessment e of the inventory with the value to me to low between costs and the price to appreciated to sale reduced with costs for

Upon completion and sale, it requires the business entity to record impairment losses in the accounting at the time of completion and sale. when the latter occurs. Reductions to reach the estimated retail sale price minus the costs to complete and Sales may occur in cases where there is a decline in selling prices or when closing costs or expenses… directly to sales are grown up. There is and the cases when some products are damaged forward that to sell or when some to others can to

are held in quantities that cannot be sold within a reasonable period of time. In such cases, the cost of inventory must to is reduced for to achieved in the price e appreciated to sale reduced with costs for to you finished and sold.

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The amount e landing of value must to defined voice for voice. In cases when an assessment i such there were no is practical, devaluation must to

Measured for a group of similar or related voices. The voices are similar or related to each other. if they belong to the same production line and have the same functions or uses. The reduction must take into account The estimated costs for completing and selling the products, but it should not include the profit that will be generated in the phases of later of production.

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Pricing e market for materials and the supplies for use in production can to descend under the cost e theirs. Unit economic

must to I continue to him hold in Accounting these materials with cost and the to don't to do differences for devaluation e their if she forecasts that these products will be sold with Prices to me high that the cost of of production.

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The amount e recoverable must to defined while rich beforehand conditions that exist in the date e reporting. Events

economic to Which ones occur after of the closure of period accountant must to are considered in that measure how much them confirm conditions that existed on or before the reporting date. This process requires that all of them be taken into account and carefully judged. the data available regarding changes in selling prices or costs in the period after the reporting date, as well as if these changes are an reflection apple an continued logical i conditions existing in or before date of reporting.

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One reduction i done in an period accountant to previous must to is taken again in them cases when conditions on the base e to whom

is done reduction there were no They no longer exist.

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Deregistration

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Inventory unregister then when for sale. Unit economic must to Unregister inventory and in them cases when he/she there were no has to me

value economic in to future, like for example inventory i aged.

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The moment when inventory must to unregister there were no is always i easy for to you determined. For example, when an unit

economic supplies an agent sales according to an agreement surrender or an agreement buying and selling, dangers and the benefits

e attached with ownership e to these mallrave can to him belonging to of the unit economic and the for consequential these goods must to continue to get to know each other like active from unit economic.

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The Presentation of Inventory In Mirrors Financial

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Inventories are presented in the mirror e position financial while used voices appropriate in format e mirror of position

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financial to given in SKK 2 Presentation e Reflections Financially. One Separation e further e voices to mirror of position

financial can to is given in Notes explanatory.

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The cost e of the inventory is reflected in format 1 to mirror of performance (expenses e exploitation to classified according to

of nature) while used voices e below:

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In format 2 to mirror of performance (expenses e exploitation to classified according to of the function, cost e of the inventory to

sold or e materials to use in production is presented in the voice “Cost to sales. Costs e of the inventory to used for goals distribution and the administrative are recorded in voices appropriate to mirror of to arrival and the expenses especially from

“Cost to sales”

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NOTES Explanatory

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In information supplementary to mirrors financial in connection with inventories must to is presented information i below:

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Date E Introduction In Application

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This standard i changed will to applies in mirrors financial that cover period accountant that start to me or after date 1

January 2015. This Standard must to applies in a way prospective.

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Comparison With me Standards International To Reporting For financing Units

Economic To Little And To Middle (SNRF For Never mind

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Table to me down shows that like correspond paragraphs e to this Standard with Small Nuclear Reactor Facility for NVM-s appropriate. Paragraphs are

considered like Correspondent if them treat in general to same issue despite from fact that standards e referred to may have changes.

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The paragraphs of SKK 4

Paragraphs e Small Nuclear Reactor Facility for Never mind published in July 2009

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Paragraph 1

None

Paragraph 2

None

Paragraph 3

None

Paragraph 4

Secret 13.2

Paragraph 5

Secret 13.3

Paragraph 6

Secret 13.1

Paragraph 7

None

Paragraph 8

None

Paragraph 9

Secret 2

Paragraph 10

Secret 13.5

Paragraph 11

Secret 13.6

Paragraph 12

Secret 13.7

Paragraph 13

None

Paragraph 14

Secret 13.7 and 13.18

Paragraph 15

Secret 13.5

Paragraph 16

Secret 13.13

Paragraph 17

Secret 13.9

Paragraph 18

Secret 13.13

Paragraph 19

Secret 13.10

Paragraph 20

Secret 13.10

Paragraph 21

Secret 13.10

Paragraph 22

Secret 13.16

Paragraph 23

Secret 13.19

Paragraph 24

Secret 13.4 and 13.19

Paragraph 25

None

Paragraph 26

None

Paragraph 27

None

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Paragraph 28

Secret 13.19

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Paragraph 29

Secret 13.20

Paragraph 30

None

Paragraph 31

None

Paragraph 32

None

Paragraph 33

None

Paragraph 34

Secret 13.22

Paragraph 35

None