An entity uses the weighted average cost formula to assign costs to inventories and cost of goods sold for financial reporting purposes, but the…

The entity should use First-in-first-out (FIFO) method for its Ind AS 108 disclosures, even though it uses the weighted average cost formula for measuring inventories for inclusion in its financial statements. Where chief operating decision maker uses only one measure of segment asset, same measure should be used to report segment information. Accordingly, in the given case, the method used in preparing the financial information for the chief operating decision maker should be used for reporting under Ind AS 108. However, reconciliation between the segment results and results as per financial statements needs to be given by the entity in its segment report.