IAS 2 inventories template
An Excel template that measures inventories item by item under IAS 2, from purchase or production to the note. It costs each item by FIFO, weighted average or specific identification, absorbs production overheads at normal capacity, tests every item against net realisable value and produces the expense, the journals and the disclosures. It comes with a fully worked example for a fictitious Irish cookware manufacturer.
What it does
Costs up to 15 items from opening stock and four purchase batches, with duties, freight-in and rebates spread over the units bought, using the cost formula you set for each category (IAS 2.23–27), or specific identification for items that are not interchangeable.
Absorbs fixed production overheads on normal capacity, reducing the rate when production is abnormally high and expensing the unabsorbed amount when it is low (IAS 2.13), with variable overheads on actual use.
Builds the standard cost of manufactured work in progress and finished goods (IAS 2.21), with the stage of completion for work in progress.
Sorts costs near production into those included in cost and those expensed – abnormal waste, storage, administration, selling costs and exchange differences (IAS 2.16–18).
Tests each item against net realisable value (IAS 2.28–31), applies the raw materials rule in IAS 2.32, and tracks the write-down allowance item by item so that amounts used on items sold are kept apart from reversals (IAS 2.33).
Produces the carrying amount by category, the cost of inventories sold and the total expense (IAS 2.34, 2.36(d)), and the journals.
Drafts the note – the accounting policy, carrying amounts by classification, write-downs, reversals and their circumstances, and pledged inventories – with an 11-point checklist and 20 automatic checks.
What it does not do
It does not cover commodity broker-traders at fair value less costs to sell, agricultural produce (IAS 41), contracts with customers (IFRS 15) or onerous contracts (IAS 37).
Weighted average is periodic; enter a perpetual system's cost per unit as a specific cost.
What you get
One Excel workbook (.xlsx) with Instructions, the blank template and a worked example: Ballinrobe Cookware Ltd, with raw materials, castings in progress, finished goods, imported goods for resale, a limited edition at specific cost, a discontinued range written down, a reversal and production below normal capacity.
Clearly marked input cells, protected formulas and built-in checks, with a status line on every tab.
Works in Microsoft Excel 2010 or later (Windows or Mac). No macros.
Scope
IAS 2 Inventories as issued by the IASB at October 2026, for one entity in one currency, with IAS 1 or IFRS 18 presentation. The full scope and limitations are set out in the Instructions tab.
Facing an onerous supply contract? Use it with the IAS 37 provisions template. Working out cash flows from the movement in inventories? See the free Cash flow statement template.
Designed for finance teams, auditors and advisers preparing or reviewing IFRS financial statements. It is a working aid: it does not replace the Standards or professional judgement, and its scope and limitations are set out in the Instructions tab. The worked example is fictitious.
