AASB 102 Inventories Requires That When Inventories Are Written Down

question 27

Multiple Choice

AASB 102 Inventories requires that when inventories are written down to net realisable value, they are written-down:

• A) on a class-by-class basis;
• B) on the basis of industry segment;
• C) on an item-by-item basis;
• D) according to geographical segment within the entity.

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Definitions:

Equally

In a manner that is the same in quantity, size, degree, or value for all parties involved.

Salary Allowance

Additional compensation provided to employees on top of their regular salary, often for specific purposes or expenses.

Capital Balance

The amount of capital attributable to the owners or shareholders of a company, often reflected in the equity section of the balance sheet.

Net Income

The company's net income, calculated by subtracting all costs and taxes from its total earnings.