The inventory write-down rule under IAS 2 can best be labeled

Question

Quizplus · Accepted Answer

IAS 2 requires inventories to be measured at the lower of cost and net realizable value. This means that if the net realizable value (the estimated selling price minus any costs to complete the inventory and sell it) is lower than the cost, the inventory must be written down to reflect this lower amount. This is commonly referred to as the "lower of cost or net realizable value" rule.

The Inventory Write-Down Rule Under IAS 2 Can Best Be