IAS2 notes

INTERNATIONAL ACCOUNTING STANDARD IAS 2 INVENTORIES - technical note proposal

1.
"As a result of the meeting of the Central Bank Accounting and Budget Committee held between July 11 and 13, 2005 in Brazil, the representatives of the Central Banks of Argentina, Brazil, Chile, Guatemala, Peru and Uruguay, with the representative of Banco de España attending as a guest, agreed to thoroughly analyze the application of some International Accounting Standards which have been reviewed and are currently contained in the International Financial Reporting Standards (IFRS), in order to prepare technical notes that contribute to the improvement of the position of central banks as regards the application of the IFRS when difficulties are encountered for said purpose..."

4.
Gold as a reserve asset
"For years the old gold standard used to force central banks to support the issuance of circulating money with gold holdings. Paper money was convertible into gold according to a fixed rate. The development of the banking and credit system, as well as the need for circulating money during the First World War led to having amounts of money in circulation that were higher than the gold stock, which resulted in the gradual abandonment of the standard, to such an extent that no nation in the world uses said standard now. (~wiki)

However, gold is still an important part of the reserve assets of most central banks in the world as a way to diversify their portfolios or as a hedging against the United States Dollar..."

"...In Latin America, the average gold holdings as of December 2005 amounted
to 34 tonnes, with a relative average weight of 5.4% of total international
reserves..."

Source: INTERNATIONAL ACCOUNTING STANDARD IAS 2 INVENTORIES - TECHNICAL NOTE PROPOSAL


[Mrt: A good sum, good points in this paper. ...and Those lines one can never find in newspapers. :o); Note that Venezuela had 357,4 t]