Under International Financial Reporting Standards (IFRS), when companies value inventory using the lower-of-cost-or-net realizable value (LCNRV), in most situations, companies price inventory on a total-inventory basis.

Question

Quizplus · Accepted Answer

Under IFRS, companies usually apply the LCNRV rule on an item-by-item basis rather than on a total-inventory basis.

Under International Financial Reporting Standards (IFRS), When Companies Value Inventory