IFRS defines net realizable value for lower-of-cost-or net realizable value as
A) estimated selling price less costs to complete and sell.
B) estimated selling price in the normal course of business.
C) net market value.
D) replacement cost less costs of disposal.
IFRS:

Question

Quizplus · Accepted Answer

Net realizable value is defined as the estimated selling price less the costs of completion and sale. This means that the value of an asset is measured by the amount of cash it is expected to generate for the company, after it has been completed and sold, minus the costs that will be incurred to complete and sell it. This is a common method used to value inventory and other assets under IFRS.

IFRS Defines Net Realizable Value for Lower-Of-Cost-Or Net Realizable Value