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Sometimes referred to as cost of inventory on hand, the inventoriable cost will include not only the cost of purchasing the items that are found in the inventory, but also all expenses that are related to using those items in the creation of products that are ultimately offered for sale.
1 IAS 2 requires that inventories are measured at the lower of cost and net realisable value. â 2 Costâ includes all costs of bringing the item to its current location and condition.3  The cost of inventories should be assigned using either the first-in first-out or weighted average cost method.D/2010/9 Leases was issued in August 2010. The revised ED/2013/6 Leases was issued in May 2013. It proposes fundamental changes to the way in which leases are accounted for and would result in amendments to IAS 2 in order to clarify which lease costs may be included as costs of conversion of inventory.