Under AASB 102, where the purchase price (cost) of an item of inventory is $248 and the net realisable value is $256, inventory should be adjusted to reflect the net realisable value.

Question

Quizplus · Accepted Answer

Under AASB 102, inventory should be measured at the lower of cost and net realisable value. Since the cost ($248) is lower than the net realisable value ($256), the inventory should not be adjusted to reflect the net realisable value.

Under AASB 102, Where the Purchase Price (Cost) of an Item