IFRS Defines Market Value for Inventory as Net Realizable Value

question 108

True/False

IFRS defines market value for inventory as net realizable value.

---

Definitions:

Depreciation Method

A systematic approach used to allocate the cost of a tangible asset over its useful life, such as straight-line or declining balance methods.

Units-Of-Activity

A depreciation method that allocates expenses based on the actual usage or activity levels of an asset.

Salvage Value

A projection of an asset's value at the end of its period of functionality.

Depreciation Cost

The systematic allocation of an asset's cost over its useful life to reflect the loss in value over time.