AASB 102 Require That Inventories Be Reinstated to the Extent

question 54

Multiple Choice

AASB 102 require that inventories be reinstated to the extent that the new carrying amount does not:

• A) exceed the net realisable value in the previous period.
• B) exceed the lower of the original cost.
• C) exceed the net realisable value in the current period.
• D) exceed the lower of the original cost or the net realisable value in the current period.

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Definitions:

Mere Exposure Effect

A psychological phenomenon by which people tend to develop a preference for things merely because they are familiar with them.

Attraction To Object

The phenomenon of being drawn or having a preference towards a specific physical object or item.

Encounter

An event or situation in which two or more individuals or entities come into contact with or confront each other, leading to interaction or exchange.

Modelling

The process of creating a representation of a system or behavior, often used in scientific research and prediction.