AASB 102 Inventories Requires Service Providers to Write Down Their

question 11

Multiple Choice

AASB 102 Inventories requires service providers to write down their inventories to net realisable value:

• A) on a class-by-class basis (e.g raw materials).
• B) on an item-by-item basis.
• C) on a group basis.
• D) according to location or geographical segment within the entity.

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Definitions:

Breach

The violation or breaking of a law, duty, or other form of agreement.

Dairy Farm

An agricultural establishment primarily engaged in the production of milk and milk products from cows or other dairy animals.

EZ Ice Cream Inc.

Presumably a fictional company; without more context, it would represent a hypothetical business entity.

Condition Precedent

A condition in a contract that must be met before a party’s promise becomes absolute.