IFRS specifies that, in the context of inventories, market means
A)replacement cost, only.
B)net realizable value, only.
C)replacement cost, except that market may not exceed net realizable value and may not be less than net realizable value reduced by a normal profit margin.
D)replacement cost, except that market may not exceed net realizable value and may not be less than present value of future cash flows.
E)replacement cost, except that market may not exceed net realizable value and may not be less than the total amount of undiscounted future cash flows.

Question

Quizplus · Accepted Answer

Under IFRS, inventories are measured at the lower of cost and net realizable value, where net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.

IFRS Specifies That, in the Context of Inventories, Market Means