The value of inventory reported in the financial statements under IAS 2 may be reported at an amount lower than its original cost.

Question

Quizplus · Accepted Answer

IAS 2 allows for lower of cost or net realizable value (NRV) to be used when valuing inventory for financial reporting purposes. Therefore, if the NRV is lower than its original cost, the inventory value will be reported at the lower amount.

The Value of Inventory Reported in the Financial Statements Under