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An entity applies IAS 2, Inventories, to the costs of obligations for dismantling, removing and restoring the site on which an item is located that are incurred during a particular period as a consequence of having used the item to produce inventories during that period.___________________. 1 The term inventory is defined in ASC 330-10-20 and paragraph 6 of IAS 2. 2 Differences are based on comparison of authoritative literature under U.S. GAAP and IFRSs and do not necessarily include interpretations of such literature. Select language:
FAS 151: Inventory Costs an amendment of ARB No. 43, Chapter 4 FAS 151 Summary This Statement amends the guidance in ARB No. 43, Chapter 4, âInventory Pricing,â toclarify the accounting for abnormal amounts of idle facility expense, freight, handling costs, andwasted material (spoilage).aragraph 5 of ARB 43, Chapter 4, previously stated that â. . . under some circumstances,items such as idle facility expense, excessive spoilage, double freight, and rehandling costs may Page 8. Copyright Â© 2004, Financial Accounting Standards Board Not for redistribution.