Under International Financial Reporting Standards (IFRS), net realizable value is the general rule for valuing which of the following types of inventory?
A) Commodities held by broker-traders.
B) Computer components held for sale to manufacturers.
C) Inventories priced on an item by-item basis, but not those priced on a total-inventory basis.
D) All of the choices are held at NRV under IFRS.

Question

Quizplus · Accepted Answer

Under IFRS, commodities held by broker-traders are valued at fair value less costs to sell, which is effectively the net realizable value. Other types of inventory are generally valued at the lower of cost and net realizable value.

Under International Financial Reporting Standards (IFRS), Net Realizable Value Is