BC22 The Exposure Draft proposed deleting paragraphs in the previous version of IAS 2 that required disclosure of the cost of inventories recognised as an expense in the period, because this disclosure is required in IAS 1 Presentation of Financial Statements. [In April 2024 the IASB issued IFRS 18 Presentation and Disclosure in Financial Statements, which replaced IAS 1 Presentation of Financial Statements.]
BC23 Some respondents observed that IAS 1 does not specifically require disclosure of the cost of inventories recognised as an expense in the period when presenting an analysis of expenses using a classification based on their function. They argued that this information is important to understand the financial statements. Therefore the Board decided to require this disclosure specifically in IAS 2. [When it issued IFRS 18, the IASB replaced IAS 1 with IFRS 18.]