Accounting for Inventory and Cost of Goods Sold (IFRS Focus)

Proper inventory accounting is essential for accurately determining a company's profitability and true financial position. Mismanagement in this area frequently leads to significant financial reporting errors. This course provides a solid foundation in managing and reporting inventory, covering everything from raw materials through finished goods, ensuring you understand the core concepts required for compliance with global standards like IFRS. What you'll learn: * Understand the definitions and classifications of various inventory types, including raw materials, work-in-progress, and finished goods. * Learn how to calculate the Cost of Goods Sold (COGS) using standard inventory flow assumptions like FIFO and Weighted Average. * Master the principles of inventory valuation under IAS 2, including cost components and the critical lower of cost and net realizable value rule. * Apply fundamental accounting procedures for tracking physical inventory counts and reconciling records with the general ledger. * Practice recording journal entries for inventory purchases, production transfers, sales, and necessary write-downs or impairments. The course begins by establishing foundational terminology and classification before moving into detailed valuation methods, cost accumulation techniques, and practical application through transactional examples. Designed for absolute beginners in accounting, business students, or professionals needing to understand core financial reporting concepts. No prior accounting knowledge is required. Start reading today to build your expertise in foundational financial accounting.