Business – 10.1 Financial statements – Inventory valuation | e-Consult
10.1 Financial statements – Inventory valuation (1 questions)
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The NRV method values inventory at the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale. Under IAS 2, inventory must be measured at the lower of cost and NRV to ensure that assets are not overstated and to reflect any decline in value, providing a more reliable and conservative measurement.