The Cambodian Accounting Standards, which have been set in bold italic type, should be
read in the context of the background material and implementation guidance in this
Standard, and in the context of Cambodian Law which sets out the requirement for
financial statements for all Accounting Entities (as defined in the Law) to be prepared in
accordance with International Accounting Standards. The standards are not intended to
apply to immaterial items
The objective of this Standard is to prescribe the accounting treatment for inventories under
the historical cost system. A primary issue in accounting for inventories is the amount of cost
to be recognised as an asset and carried forward until the related revenues are recognised.
This Standard provides practical guidance on the determination of cost and its subsequent
recognition 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.