IAS 2 Inventories
A primary issue in accounting for inventories is the amount of cost to be recognised as an asset until the related revenues are recognised.
"No taxation without representation." This slogan accompanied a famous historical case of inventory destruction (can you guess which one?)
Inventories, the oldest accounting subject, is all about the value it holds today, earns tomorrow and loses in-between.
Take a look at my real-world explanation of inventories in 15 seconds.⏩
The slogan announced the Boston Tea Party targetting the British implementation of the Tea Act of May 10, 1773 which allowed the East India Company to sell tea from China in the colonies without paying taxes apart from those imposed by the Townshend Acts.
The Sons of Liberty strongly opposed the Townshend Act taxes, which they saw as a violation of their rights as Englishmen to "no taxation without representation".
Disguised as Native Americans, Sons of Liberty activists boarded the Dartmouth, a British ship that had docked in Boston carrying a major shipment of East India Company tea, and set about throwing 342 chests of the tea into Boston Harbor.
Source: Wikipedia.
