Where the Net Realisable Value of Inventories Falls Below Cost

question 14

Multiple Choice

Where the net realisable value of inventories falls below cost, AASB 102 Inventories requires that:

• A) no adjustment be made, but the difference between net realisable value and cost be disclosed in the notes to the financial statements.
• B) the difference be added to the carrying amount of the inventories.
• C) inventories continue to be carried in the statement of financial position at cost.
• D) inventories be written down to net realisable value.

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Definitions:

Biodiversity

The variety and variability of life forms within a given ecosystem, region, or on the entire Earth.

Species

The basic unit of biological classification, defined as a group of living organisms consisting of similar individuals capable of exchanging genes or interbreeding.

Ecosystems

Communities of interacting organisms and their physical environment, functioning as a unit.

Human-Centred

An approach or design philosophy that prioritizes the needs, preferences, and limitations of the end-users at every stage of the design process.