Under International Financial Reporting Standards (IFRS), a Company Who Recorded

question 43

True/False

Under International Financial Reporting Standards (IFRS), a company who recorded a loss on a purchase commitment in 2018 cannot record a recovery of that loss in 2019 if prices improve.

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Definitions:

Beginning of Year

The start of a calendar or fiscal year, commonly used as a reference point for financial and accounting purposes.

Direct Material

Raw materials that are directly traceable to the production of a specific good or service.

Purchased

Refers to items or services that have been bought by a company from outside suppliers.

Raw Materials Inventory

Stocks of the basic raw materials that are input into a manufacturing process and are waiting to be processed or used.