Many businesses sell goods that they have bought or produced. When the goods are bought or produced, the costs associated with such goods are capitalized as part of inventory (or stock) of goods.U.S. Financial Accounting Standards Board (FASB) Accounting Standards Codification ASC 330-10-30-1; International Accounting Standards IAS 2 , paragraph 10. These costs are treated as an expense in the period the business recognizes income from sale of the goods.IAS 2, paragraph 34.
