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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › Inventory value
Hello, in accordance with IAS 2 inventory is to be valued at the lower of cost and NRV. My question is suppose the NRV is lower than cost and has fluctuated 3 times, once at the year end and 2 times after that before the audit report is signed off, which of the 3 values would be used ? I’m thinking that it would be a subsequent event and would be the most recent NRV. Please advise, thanks
If the market price of inventory fell after year end, that would be a non-adjusting event because at year end the inventory was worth its value then. It does not make any difference whether the fall in inventory value was caused by price movements or damage occurring after year end.