a. Costs Excluded from Cost of Inventories:

1. Abnormal amounts of wasted materials, labor, or other production costs.
2. Storage costs, unless those costs are necessary in the production process prior to a further production stage.
3. Administrative overheads that do not contribute to bringing inventories to their present location and condition.
4. Selling costs.

b. IPSAS 12 Disclosure Requirements:

1. The accounting policies adopted in measuring inventories, including the cost formula used.
2. The total carrying amount of inventories and the carrying amount in classifications appropriate to the entity.
3. The carrying amount of inventories carried at fair value less costs to sell.
4. The amount of any reversal of any write-down that is recognized in the statement of financial performance in the period.
5. The circumstances or events that led to the reversal of a write-down of inventories.
6. The carrying amount of inventories pledged as security for liabilities.
7. The cost of inventories recognized as an expense during the period or the operating costs applicable to revenues, recognized as an expense during the period, classified by their nature​