Page 73 - Finac1 Test 1 slides

INVENTORIES

Measurement

• Core measurement principle

• Lower of:

• Cost, and

• NRV (Net realisable value)

• IAS 2 is outside the scope of impairment per IAS 36

• NRV is a built‐in impairment mechanism to ensure

inventory is not recorded above its recoverable

amount

73