Following IFRS, Which of the Following Statements Is Not Correct

question 104

Multiple Choice

Following IFRS, which of the following statements is not correct?

• A) Firms determine the lower-of-cost-or-market value of inventory using individual-items or groups of items.
• B) IFRS inventory write-downs can be reversed later if the net realizable value of inventory increases.
• C) The net realizable value of inventory is calculated as the estimated selling price plus the estimated costs of completion and sale.
• D) IFRS-reporting firms determine if a write-down for inventory is needed by comparing the historical cost and the net realizable value of inventory.

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Definitions:

Cognitive Processes

The mental actions or processes involved in acquiring knowledge and understanding through thought, experience, and the senses.

Discrimination

The unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex, often examined within social psychology and sociology.

Generalization

A principle in psychology that refers to the tendency of a response that is learned to one stimulus to be elicited by similar but distinct stimuli.

Unconditioned Response

An innate, automatic response to a stimulus that happens spontaneously, without the need for prior learning or conditioning.