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Dear sir, IAS 2 state that “Net realisable value for inventories may not equal fair value less costs to sell” means sometime NRV equal FV less costs to sell, doesn’t it?
Please advise me. Thanks in advance.
The net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.
IAS 2 states that inventory must be valued at the lower of cost and NRV.
This is all explained in my free lectures on the valuation of inventory.
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