CAF-5 · Chapter 1 · Question 4 of 10
According to IAS 2, at what value should an entity carry its inventories in the financial statements at the end of a reporting period?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) At the lower of cost or net realisable value
Explanation
According to IAS 2, an entity is required to evaluate its inventories at the end of each reporting period and value them at the lower of cost or Net Realisable Value (NRV).
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