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:

Metabolic Disorder

A condition that occurs when the metabolic process is disrupted, leading to an imbalance of essential substances in the body.

Insulin

A hormone produced by the pancreas that allows your body to use sugar (glucose) from carbohydrates in the food for energy or to store glucose for future use.

Type 1 Diabetes

An autoimmune condition in which the pancreas produces little to no insulin, resulting in high blood sugar levels, and necessitates lifelong insulin use.

Hypoglycemia

A condition characterized by abnormally low levels of glucose (sugar) in the blood.