IAS 10

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August 16, 2018 at 7:29 am #468064

alikhakar
Participant

Why the sale of inventory below carrying value is considered as an adjusting event ..when the sale is taking place in next year the loss should be attributed to next year why it is an adjusting event` ?
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August 17, 2018 at 2:40 pm #468220

P2-D2
Keymaster

Hi,

The sale gives information of the value of inventory that was held at the reporting date. If it has been sold below cost now then it would have been sold at below cost on the reporting date too, hence the adjustment.

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