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Sir can you please tell me why this an unadjusting event?
“The sale of inventories valued at cost at the end of the reporting period for a figure in excess of
cost”Thanks in advance
In future, you must ask in the Ask the Tutor Forum if you want me to answer – this forum is for students to help each other.
From IAS2, inventories should be valued at the lower of cost and net realisable value. Therefore the value would only be adjusted if they were sold for a price lower than cost. Here they are sold for a price higher than cost and so no adjustment is needed.
I do suggest that you watch my free lectures. They are a complete free course for Paper F3 and cover everything needed to be able to pass the exam well.
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