Assume that Darcy Industries had the following inventory values:Inventory cost (on December 31, 2014) = $500Inventory market (on December 31, 2014) = $450Inventory net realizable value (on December 31, 2014) = $440Inventory market (on June 30, 2015) = $520Inventory net realizable value (on June 30, 2015) = $525Under IFRS, what is the inventory carrying value on December 31, 2014?
A) $500
B) $450
C) $440
D) $525

Question

Quizplus · Accepted Answer

Under IFRS, the inventory carrying value is determined by the lower of cost and net realizable value. Since the net realizable value on December 31, 2014 is $440 which is lower than the inventory cost and market value, the inventory carrying value is $440.

Assume That Darcy Industries Had the Following Inventory Values:Inventory Cost