Net realizable value method in inventory valuation can be used, even if this value is higher than the cost of inventories False or True?

False , Because under IFRS Inventory recognised at lower of which ( NRV ) or Cost .

According to IAS-2,Inventory should be valued at lower of cost and net realisable value.Net realisable value is selling price less cost to sell and estimated cost for completion

False

False NRV is the estimated selling price in the ordinary course of business, less the estimated cost of completion and the estimated costs necessary to make the sale. [IAS2.6] Any write-down to NRV should be recognised as an expense in the period in which the write-down occurs. Any reversal should be recognised in the income statement in the period in which the reversal occurs. [IAS2.34]

False, inventory is always valued at lower of cost or net realisable value

Inventory must always be valued at lower of cost or net realisable value therefor the answer is FALSE.

Nope,According to ias2 it must be recorded at lower of COST or NRV

False : in valuation of assets or inventory you have to select which is lower between NRV or Cost of the asset / inventory items.

False. According to IAS2 inventory should be valued at lower of cost or net realsable value.

False. Because ,Inventory should valued at cost price or market price whichever is lower.

Joshi Mathew

CIA #1036906

NRV method is only used where cost of inventory is highe than that of its selling value less selling cost(NRV)