AASB 102 requires that inventory is valued at:
A) the lower of cost and recoverable value, on an item-by-item basis where practicable.
B) cost or fair value for classes of assets and services that are defined as inventories.
C) the lower of cost and net realisable value, on an item-by-item basis where practicable.
D) cost or deprival value, whichever is the lower, for classes of inventories.

Question

Quizplus · Accepted Answer

AASB 102 requires that inventory is valued at the lower of cost and net realisable value on an item-by-item basis where practicable. This means that inventory should be recorded at the cost to acquire or manufacture it, and that cost should be compared to the inventory's net realisable value. If the net realisable value is lower than the cost, the inventory must be written down to its net realisable value.

AASB 102 Requires That Inventory Is Valued At