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Applies to all inventories except:
- Contracts accounted for using the percentage of completion method (Section 3400, Revenue).
- Financial Instruments.
- Agricultural inventories held by agricultural producers (Section 3041, Agriculture.
- Major spare parts and standby equipment that may qualify as property, plant and equipment (Section 3061, Property, Plant and Equipment).
Does not apply to the measurement of inventories:
- Held by producers forest products, minerals and mineral products measured at net realizable value.
- Held by commodity broker-traders who measure inventory at fair value less costs to sell.