Inventory reported at lower of cost or realisable amount that is found to be unsaleable after the reporting date should be treated as a non-adjusting event.

Question

Quizplus · Accepted Answer

Non-adjusting events are those that occur after the reporting period and do not provide evidence of conditions that existed at the end of the reporting period. Unsaleable inventory identified after the reporting date is considered a non-adjusting event because it reflects conditions that arose after the reporting period.

Inventory Reported at Lower of Cost or Realisable Amount That