IAS 2 Inventories requires that when inventories are written down to net realisable value, they are written-down:
A) on a class-by-class basis;
B) on the basis of industry segment;
C) on an item-by-item basis;
D) according to geographical segment within the entity.

Question

Quizplus · Accepted Answer

IAS 2 requires that inventories be written-down to their net realisable value on an item-by-item basis. This means that each inventory item should be assessed individually to determine its net realisable value and any necessary write-down should be made separately for each item. This approach ensures that the inventory is fairly stated and reflects the true economic value of each item.

IAS 2 Inventories Requires That When Inventories Are Written Down