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Which of the following is not in accordance with ias 2 inventories?
1)cost of inventories includes all costs of purchases, conversion and other costs in bringing inventories to their current location and condition.
2) estimates of nrv are based on most reliable evidence avail at time of estimates are made, of amount inventories are expected to be realised.
3) materials and other supplies are not written down below cost if finished products in which they are incorporated are expected to sold at or above cost.
4) allocation of fixed production overheads to the costs of conversion is based on normal capacity of production facilities.
Hi tutor, may i know which is the correct answer and why?That’s a tricky one but it looks like option 3 is the one. What does the answer say?
Its a question from my school’s so i dont have the answer yet. ):
Thank you!! But may i know whats the reason?Each line of inventory is considered separately. The other three are all in accordance with IAS 2 so far as I can work out
Now, can you do me a favour, please. I assume that you’re aiming to do GCSE O or A level. Can you tell me which examining board it is that you are studying for? If you don’t yourself know, your teacher certainly will so maybe you could ask him / her?
Thankyou! I finished my o level already so now i am currently studying in nan yang polytechnic
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