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The answer is False! The IAS2 - says cost or net realisable value.
In cases of damaged stock, the following could be done by a company :
1. Sell the damaged stock at a discount, and if is below cost then show loss
2. Scap the damage goods. The total cost of purchase would shown as expense
3. Fix the damage goods and sell them either at a discount or normal price. The additional cost would be added to the cost of sales. If you also give discount see1.
