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:

Job Description

A formal account of an employee's responsibilities, duties, and the scope of a specific job role within an organization.

Sales Position

A job role focused on generating and closing business deals, maintaining customer relationships, and achieving sales targets.

Commission Compensation Plan

A pay structure where employees earn a percentage of the sales they generate, incentivizing higher performance and sales.

Earnings

The amount of profit that a company produces during a specific period, often used as an indicator of the company's financial health.