Inventory should be stated at (a) Lower of cost and fair value (b) Lower of cost and net realizable value?

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What is the basic principle for measuring inventories in line with IAS 2?
Posted by:
Shahbaz Hayder
11-January-2016

Accounting Financial Reporting Financial Accounting Finance

Question added by Deleted user
Date Posted: 2015/08/10

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2 Answers

Vijayabharathi Kalyanasundaram (ACMA - INDIA)

by Vijayabharathi Kalyanasundaram (ACMA - INDIA) , Finance Analyst , shell

Answer (B) - Lower of cost and net realizable value

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Muhammad Ramzan Tufail ACCA

by Muhammad Ramzan Tufail ACCA , Assistant Finance Manager , Eltizam Asset Management Group

B) is the right ans. According to IAS-2, Inventory should be stated at Lower of ! Cost !! NRV

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