Under IAS 2 Inventories, Items of Inventory That Are Used

question 17

Multiple Choice

Under IAS 2 Inventories, items of inventory that are used by business enterprise as components in a self-constructed property asset are required to be:

• A) aggregated into the 'cost of goods sold' expense in the period in which the items are used;
• B) expensed directly into equity in the period in which the items are used;
• C) capitalised and depreciated;
• D) added to a 'property construction' provision account.

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