<s>[INST] What are the exceptions where ICDS-II does not apply? [/INST] This ICDS shall be applied for the valuation of inventories, except to the following assets:

a) Work-in-progress arising under 'construction contract' including directly related service contract, which is dealt with by the ICDS-III (Construction Contracts);

b) Work-in-progress, which is dealt with by other ICDS;

c) Shares, debentures, and other financial instruments held as stock-in-trade, which is dealt with by the ICDS-VIII (Securities);

d) Producers' inventories of livestock, agriculture and forest products, mineral oils, ores and gases which are measurable at net realisable value; and

e) Machinery spares, which can be used only in connection with a tangible fixed asset and their use is expected to be irregular, shall be dealt with in accordance with the ICDS-V (Tangible Fixed Assets).​ </s>