MyCIMA

How to calculate distribution cost according to IAS2?

Posted: Monday 28 June 2010
Replies : 3
Category: Business ethics, Corporate finance, Management accounting, Professional development, Studying CIMA

Question asked by:

priya arora - view profile
Please help me to calculate distribution cost as per IAS2 that would add to inventory.

IAS 2

Posted by Bill Haskins on Tuesday 29 June 2010 16:06

Hi Priya,

You might like to have a look at Deloitte’s IFRS e-learning modules, which can be found on Deloitte’s IASplus website.  Access to these modules is free, and there is a module which covers IAS 2.

Kind regards,

Bill Haskins, CIMA

IAS2 and distribution costs

Posted by Rehman Vohra on Saturday 31 July 2010 15:30
I would have thought distribution costs to be selling costs and not product costs and hence can not be aded to cost of inventory.

Distribution costs under IAS2

Posted by Robert Morton on Friday 17 September 2010 10:24

Hi there.

Distribution costs associated with transporting goods to your customer should be expensed as incurred under IAS2. Inbound transportation expenses (ie the cost of transport from your supplier to your own premises) can be allocated to your Inventory cost.

 I agrees with Bill's comments (above). Check out Deloittes e-learning modules, they are pretty good.