AASB 102 provides that not-for-profit entities:
A) must value their assets at the lower of cost or net realisable value to allow reports to be compared.
B) should only report inventories at cost for simplicity.
C) should value their assets at either cost or current replacement cost, whichever is more beneficial.
D) will record the inventories at the lower of cost or current replacement cost.

Question

Quizplus · Accepted Answer

AASB 102 requires not-for-profit entities to value their inventories at the lower of cost or current replacement cost. This allows for a more conservative valuation, as assets are not overstated if replacement costs have decreased since the assets were acquired. It also ensures comparability with other entities that may use a similar valuation method.

AASB 102 Provides That Not-For-Profit Entities