Accounting · IAS 2 Inventories

Identify whether the following statements regarding IAS 2 'Inventories' are Correct or Incorrect: 1. Production overheads should be included in cost on the basis of a company's actual level of activity in the period. 2. In arriving at the net realisable value of inventories, settlement discounts must be deducted from the expected selling price. 3. In arriving at the cost of inventories, FIFO, LIFO and weighted average cost formulas are acceptable. 4. It is permitted to value finished goods inventories at materials plus labour cost only, without adding production overheads.