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In Business / High School | 2025-07-03

What is the rule for valuing inventory on the balance sheet under IAS 2?

A. Higher of Cost or Selling Price
B. Lower of Cost or Replacement Cost
C. Higher of Cost or Market Value
D. Lower of Cost or Net Realisable Value

Asked by tiny9139

Answer (2)

Under IAS 2, inventory is valued on the balance sheet at the lower of cost or net realizable value. This method ensures accurate asset representation and prevents overstatement of inventory values. The chosen answer option is D: Lower of Cost or Net Realisable Value.
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Answered by Anonymous | 2025-07-04

The rule for valuing inventory on the balance sheet under International Accounting Standard (IAS) 2 is defined by the 'Lower of Cost or Net Realisable Value.' ;

Answered by DanielJosephParker | 2025-07-06

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