AS 2 is the Accounting Standard for the valuation of inventories and their accounting treatment. This accounting standard covers methods to value the inventory of a business and its disclosure in the financial statements. The general rule mentions valuing inventories i.e. closing stock of a business at cost or market value whichever is lower.

AS 2 typically refers to “Accounting Standard 2,” which deals with the valuation of inventories. It provides guidelines for determining the cost of inventories and the methods to be used for their valuation, such as FIFO (first-in, first-out), LIFO (last-in, first-out), or weighted average cost.

The objective of IAS 2 is to prescribe the accounting treatment for in­ven­to­ries. It provides guidance for de­ter­min­ing the cost of in­ven­to­ries and for sub­se­quently recog­nis­ing an expense, including any write-down to net re­al­is­able value. It also provides guidance on the cost formulas that are used to assign costs to in­ven­to­ries.

IAS 2 is an international financial reporting standard produced and disseminated by the International Accounting Standards Board (IASB) to provide guidance on the valuation and classification of inventories.

IAS 2 provides guidance for determining the cost of inventories and the subsequent recognition of the cost as an expense, including any write-down to net realisable value. It also provides guidance on the cost formulas that are used to assign costs to inventories.