Which of the Following Statements Is True Regarding IFRS and Inventories

question 37

Multiple Choice

Which of the following statements is true regarding IFRS and inventories?

• A) In order to determine market valuation of inventories, IFRS uses a ceiling and a floor.
• B) IFRS permits the option of valuing inventories at fair value.
• C) With respect to inventories, IFRS defines market as net realizable value.
• D) IFRS allows inventory to be written up above its original cost.

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Definitions:

Preconscious

Refers to thoughts or feelings that are not immediately in one's conscious awareness but can be easily accessed.

Defence Mechanism

Unconscious mental tactics employed to shield oneself from the distress caused by thoughts or feelings that are deemed unacceptable.

Rationalization

A defense mechanism in which controversial behaviors or feelings are justified and explained in a seemingly rational or logical manner to avoid the true explanation.

Projection

A defense mechanism where an individual attributes their own unacceptable thoughts, feelings, or motives to someone else.