In order to comply with the Australian Accounting Standards, which of the following assets cannot be recorded at its historical cost?
A) inventories.
B) buildings.
C) motor vehicles.
D) land.

Question

Quizplus · Accepted Answer

Inventories must be recorded at the lower of cost and net realizable value according to the Australian Accounting Standards, not at their historical cost. This is to ensure that the inventory is not recorded at an amount greater than the entity expects to recover from its use or sale.

In Order to Comply with the Australian Accounting Standards, Which