Under International Financial Reporting Standards, inventory is valued at the lower of cost and:

Question

Quizplus · Accepted Answer

According to IFRS, inventory should be valued at the lower of cost and net realizable value (NRV). NRV 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. This approach ensures that inventory is not valued at more than its realizable value or market value.

Under International Financial Reporting Standards, Inventory Is Valued at the Lower