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If we valued inventory according to IAS 2 then difference between the cos and NRV is our loss. what is the name of this loss and where it goes in income statement?
Hi,
It is usually referred to as a write-down of inventory. It isn’t directly seen in the statement of profit or loss as we just record the lower closing inventory figure in cost of sales that then gives us the higher cost of sales figure. This gives us an overall lower profit.
Thanks
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