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If we said that current assets don’t go through impairment review where will we account for loss in the value of held inventory(closing) at the reporting date? as per IAS 2 inventory is valued at lower of cost and NRV. suppose it got damaged and NRV is lower, would that not be enough reason for impairment? (this question is in reference to question 50 of BPP revision kit).
IAS 36 is not applied to inventory, where the rules used are those from IAS 2. If the inventory is damaged then we would look at the new NRV and still then compare this to the cost to look at its potentially new value. If the NRV has fallen due to the damage but is still higher than cost then the inventory is still held at cost, hence no reduction in value of the current asset.