PRC-1 · Chapter 7 · Question 33 of 100
Which of the following scenarios REQUIRES the use of the 'Specific Identification' cost formula under IAS 2?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) When inventory items are not ordinarily interchangeable and are segregated for specific projects.
Explanation
IAS 2 mandates that the cost of inventories of items that are not ordinarily interchangeable, and goods or services produced and segregated for specific projects, shall be assigned by using specific identification of their individual costs.
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