According to IFRS, how should inventory be measured on the balance sheet?
A)Historical cost
B)Market value
C)Lower of cost or Net realizable value
D)Net realizable value

Question

Quizplus · Accepted Answer

According to IFRS, inventory should be measured at lower of cost or net realizable value. This means that inventory should be reported on the balance sheet at its historical cost or its net realizable value, whichever is lower. This conservative approach results in a lower reported value of inventory and reduces the risk of overstating assets on the balance sheet.

According to IFRS, How Should Inventory Be Measured on the Balance