IFRS: office supplies = inventory?

[svdongen]

I am not a professional accountant, but for a small organisation using the IFRS for SMEs, I do prepare the financial statements. However, it being the first time that IFRS for SMEs are applied, I have to use the Inventory standard (no. 13).

Office supplies would normally be seen as expense (as they are of small cost and used in the same period approximately). Now, we have bought enough printing paper for 5 years. For our P&L, this amount may be material, so I want to account for it correctly. Should it be accounted for as inventory (consumed in providing services) or just be reported as administrative expense in the period we bought the stuff?

Our organisation is an orchestra and choir, the service we render is a concert. The paper is not directly used in the concert, but for administrative purposes.

Regards,

Sjoerd

 

[Fidget]

"The paper is not directly used in the concert, but for administrative purposes."

It is that sentence that renders it an expense rather than inventory. If you were stocking up on spare strings or bows etc then given the nature of the organisation, I expect they would qualify as inventory for use in the provision of the service being provided. But alas, paper for administrative purposes, isn't going to qualify.