Section 3031 - Inventories

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.

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