Dear sir, First of all I would like to say thank you to explain the concepts .My question is that in Neil example .when calculating NRV for undamaged units why you considered Straight 12 dollars instead the NRV should be as per formula .please explain ?
CIMA Forums
IAS 2 inventory
Hi,
Glad you find the explanations helpful. Hopefully it will see you through the F1 exam.
For the undamaged goods there is no requirement to repair the goods so we can ignore the $2 minor repair cost and so the NRV would be $12 and not the $10 that is used for the goods that have been damaged.
Thanks
Sign in to reply to this topic.