Asked by Queen Nahnuh on Jun 13, 2024
Verified
IFRS defines market for lower-of-cost-or market as
A) net realizable value.
B) estimated selling price in the ordinary course of business.
C) replacement cost.
D) replacement cost less costs of disposal.
Net Realizable Value
The estimated selling price of goods, minus the costs of their sale or completion, used in determining the value of inventory on hand.
- Illustrate the fundamentals of the lower-of-cost-or-market rule and net realizable value, emphasizing their utilization in assessing inventory worth.
Verified Answer
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Final Answer :
A
Explanation :
Net realizable value is defined by IFRS as 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 aligns with option A.
Learning Objectives
- Illustrate the fundamentals of the lower-of-cost-or-market rule and net realizable value, emphasizing their utilization in assessing inventory worth.
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