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IAS 2 Inventory Valuation method

My company is revaluating inventory on a frequent basis ;monthly due to various factors including BOM changes; suppliers price increases; foreign exchange rate which is the main reason as we import 60% of our raw material from Europe and Japan. With the recent audit the foreign currency revaluation as at end of the Financial Year was disallowed. And the revaluation done for the past 3months was also disallowed. Please assist.

Answers

Topic Expert
Stephen Roulac
Title: CEO
Company: Roulac Global LLC
(CEO, Roulac Global LLC) |

While certain essential information is not provided, especially who disallowed the valuation and why, suggest that obtaining concurrence of the inventory revaluation methodology could be one way to improve chances of the revaluation being accepted. Another idea is to gain concurrence that review and confirmation by a designated party, perhaps not employed by the company, could provide greater comfort.

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