Facts
Brilliant Trading Inc. purchases motorcycles from various countries and exports them to Europe. Brilliant Trading has incurred these expenses during 2005:
(a) Cost of purchases (based on vendors’ invoices)
(b) Trade discounts on purchases
(c) Import duties
(d) Freight and insurance on purchases
(e) Other handling costs relating to imports
(f) Salaries of accounting department
(g) Brokerage commission payable to indenting agents for arranging imports
(h) Sales commission payable to sales agents
(i) After sales warranty costs
Required
Brilliant Trading Inc. is seeking your advice on which costs are permitted under IAS 2 to be included in cost of inventory.