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Should inventories be reported at their cost or at their selling prices?

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Question added by Rana Alnajjar , Web developer , Lebcards
Date Posted: 2016/12/18
Nazmul Islam CMA
by Nazmul Islam CMA , Manager , Robi Axiatal Ltd.

Inventories should be reported at lower or market price.

Zaki Abdullah
by Zaki Abdullah , Finance Director , Prainsa Saudi Arabia for Precast Concrete Co.

The general answer is that inventories should be reported at cost.

Abde Saeed
by Abde Saeed , Senior Accountant , Al Hejjen Group

As per IAS 2 inventory should be reported at lower of Cost or NRV(S.P-Cost of selling goods)

Muhammad Jalil Inayatullah
by Muhammad Jalil Inayatullah , Senior Accounts Officer , Raptor Global Logistics (Pvt) Ltd

Inventories should be recorded at cost

manseer muhammed ali
by manseer muhammed ali , Accountant General , Royal Lighting L.L.C & Royal Furnishing LLC

The general answer is that inventories should be reported at cost. ... (The selling price minus the cost to complete and dispose is the net realizable value.) In a few industries, such as gold mining and meatpacking, it is accepted practice to report the inventory at its net realizable value.

Frank Mwansa
by Frank Mwansa , ACCOUNTING LECTURER , FREELANCER

According to IAS 2 inventory should be recorded at the lower of cost or net realizable value.

Abdullah Aziz Eldain Morsi  Elgendy -        CMA  Candidate
by Abdullah Aziz Eldain Morsi Elgendy - CMA Candidate , Regional Receivable Accountant , Amiantit Group of Companies

   the inventory of   final product only can be repotted with  its cost  

Majid Wangade
by Majid Wangade , Senior Accountant , KANTOUR LIMITED COMPANY ( Real Estate, Construction and Asset Management )

A merchant's inventory would be reported at the merchant's cost to purchase the items. A manufacturer's inventory would be at its cost to produce the items (the cost of direct materials, direct labor, and manufacturing overhead) (The selling price minus the cost to complete and dispose of is the net realizable value.)

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