$90,000 - ANS ✓A company determined the following values for its
inventory as of the end of its fiscal year:
Historical cost $100,000
Current replacement cost 70,000
Net realizable value 90,000
Net realizable value less a normal profit margin 85,000
Fair value 95,000
Under IFRS, what amount should the company report as inventory on its
balance sheet?
Biological inventory items - ANS ✓Under IFRS, which of the following
inventory items are not valued at the lower of cost or net realizable value?
IFRS CPA Exam #2
, 2
IFRS
$ 850 - ANS ✓Brady Corporation values its inventory at the lower of cost
or net realizable value as required by IFRS. Brady has the following
information regarding its inventory:
Historical cost $1,000
Estimated selling price 900
Estimated costs to complete and sell 50
Replacement cost 800
What is the amount for inventory that Brady should report on the
balance sheet under the lower of cost or net realizable value method?
$ 850 - ANS ✓Brady Corporation values its inventory at the lower of cost
or net realizable value as required by IFRS. Brady has the following
information regarding its inventory:
Historical cost $1,000
Estimated selling price 900
Estimated costs to complete and sell 50
Replacement cost 800
IFRS CPA Exam #2
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