Which of the following statements is true regarding IFRS and inventories?
A) In order to determine market valuation of inventories, IFRS uses a ceiling and a floor.
B) IFRS permits the option of valuing inventories at fair value.
C) With respect to inventories, IFRS defines market as net realizable value.
D) IFRS allows inventory to be written up above its original cost.

Question

Quizplus · Accepted Answer

IFRS defines the market value of inventories as the net realizable value, which is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale.

Which of the Following Statements Is True Regarding IFRS and Inventories