inventories for a content developer publisher

Question

are pre-production costs considered to be inventories?

Comments

What sort of costs are you referring to?

Answer 1

According to IAS-2, all costs necessary to bring an asset to its salable condition should become part of inventory. In case of a content developer, pre-production costs costs, that are directly related to a project (does not include allocated costs) are the costs necessary to bring the asset to its salable condition. Thus these costs should become part of your inventory.