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Version date: 26 February 2020 - onwards

Reference to historical cost system (paras. BC4-BC5)

BC4 Both the objective and the scope of the previous version of IAS 2 referred to 'the accounting treatment for inventories under the historical cost system.' Some had interpreted those words as meaning that the Standard applied only under a historical cost system and permitted entities the choice of applying other measurement bases, for example fair value.

BC5 The Board agreed that those words could be seen as permitting a choice, resulting in inconsistent application of the Standard. Accordingly, it deleted the words 'in the context of the historical cost system in accounting for inventories' to clarify that the Standard applies to all inventories that are not specifically exempted from its scope.