AASB 102 Inventories requires that when inventories are written down to net realisable value, they are written-down:
A) on a class-by-class basis;
B) on the basis of industry segment;
C) on an item-by-item basis;
D) according to geographical segment within the entity.

Question

Quizplus · Accepted Answer

AASB 102 Inventories requires inventories to be written down on an item-by-item basis. This means that each individual inventory item must be evaluated and written down to its net realisable value separately. Writing down on a class-by-class, industry segment or geographical segment basis does not satisfy the requirements of AASB 102.

AASB 102 Inventories Requires That When Inventories Are Written Down