Resume

PSAK 14
Inventories

Fitria Kemala Dewi

201450246

Nadia Nathania Tjandra

201450263

Inventories
Inventories are assets:

Available for sale in the normal course of business

In the production process or on the way
Or in the form of materials or equipment / supplies for use in the production
process or the provision of services

Inventories are measured at cost or net realizable value, whichever is lower.

Cost of inventory includes:

Purchase costs
Conversion cost
Other costs incurred until supplies are in condition and ready to be sold or used
(present location and condition)

Cost of purchase includes the purchase price, import duties and other taxes except those that
can be billed back to the tax office.
Conversion costs include costs directly related to the units produced and the cost of fixed and
variable production overheads allocated systematically.
Costs of inventory:

The amount of waste which is not normal

Storage costs unless those costs are needed in the production process before the next
production stage
General and administrative costs
Cost of sales

The measurement technique standard cost method of inventory costs, retail method may be
used if the results are closer to the historical cost.
Supplies purchased with deferred payment should not include elements of interest.

Cost Formula
For items that cannot be replaced by other items (not interchangeable) and services produced
and segregated for specific projects specific identification of the cost of each.
For other goods costs calculated using the formula:

First in first out / FIFO

Weighted Average

Entities should use the same cost formula for all inventories having similar nature and use.
For supplies that have characteristics and different uses, different cost formulas allowed.

Net Realizable Value

Consistent with the opinion: assets should not exceed the amount that might otherwise be
realized.
Net realizable value is the estimated selling price in the ordinary course of business less the
estimated costs of completion and the estimated costs necessary to make the sale.
Estimated net realizable value:

Based on the most reliable evidence available

Considering the fluctuations in the price or costs directly related
Considering the purpose of inventory

Net realizable value:

Replacement cost
The selling price less the cost to sell

Cost Measurement Techniques

Cost measurement techniques Standards, retail, and gross profit.
Can be used if the results approximate cost.
Standard cost should be reviewed.
Retail method retail industry a large number of items that changing rapidly, and it has
the same margin in which impractical to use other methods.

Decrease to Net Realization Value

Decrease can be done per item or group of items.
The decline that occurred directly charged load current period / increase the burden of supply.
Recovery value will be recognized as a deduction from the amount of load supplies.
Net realizable value that has been determined to be revisited in each subsequent period.

Recognition as an Expense
If the inventory is sold, the carrying value of inventories should be recognized as an expense
in the period of revenue recognition.
Any decline in the value of inventories below cost to net realizable value and all losses of
inventories should be recognized as an expense in the period when the decrease or loss
occurs. Each restoration is recognized as a reduction in the amount of inventories expense in
the period the reversal occurs.