AASB 102 Inventories specifies that the measurement rule for inventories is:
A) higher of initial cost and realisable value.
B) higher of production costs and selling price.
C) lower of fair value and selling price.
D) lower of cost and net realisable value.

Question

Quizplus · Accepted Answer

AASB 102 requires inventories to be measured at the lower of cost and net realisable value. This means that if the net realisable value of the inventory is lower than its cost, the inventory must be written down to its net realisable value.

AASB 102 Inventories Specifies That the Measurement Rule for Inventories