AASB 102 Inventories requires service providers to write down their inventories to net realisable value:
A) on a class-by-class basis (e.g raw materials).
B) on an item-by-item basis.
C) on a group basis.
D) according to location or geographical segment within the entity.

Question

Quizplus · Accepted Answer

AASB 102 requires inventories to be measured at the lower of cost and net realisable value on an item-by-item basis. This means that each individual inventory item must be assessed to determine whether it is likely to be sold at a price above its cost, and if not, the item must be written down to its estimated net realisable value.

AASB 102 Inventories Requires Service Providers to Write Down Their