AASB 102 require that inventories be reinstated to the extent that the new carrying amount does not:

Question

Quizplus · Accepted Answer

AASB 102 requires that inventories be measured at the lower of the original cost or net realisable value. When the inventories are measured again, the carrying amount should not exceed the lower of the original cost or the net realisable value in the current period. This is because the purpose of measuring inventories at the lower of cost or net realisable value is to reflect the amount that is expected to be recovered from the sale of the inventories. If the carrying amount is higher than the net realisable value, it may overstate the value of the inventories on the balance sheet. Therefore, the correct answer is D.

AASB 102 Require That Inventories Be Reinstated to the Extent