AASB 102 Inventories specifies that the measurement rule for inventories is: higher of initial cost and realisable value. O higher of production costs and selling price. O lower of fair value and selling price. lower of cost and net realisable value.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

i need the answer quickly

Question 17
AASB 102 Inventories specifies that the measurement rule for inventories is:
higher of initial cost and realisable value.
higher of production costs and selling price.
lower of fair value and selling price.
lower of cost and net realisable value.
Question 18
The write down of inventories to net realisable value in a prior period:
can be reversed in a later period with no upper limit from a previous write down.
cannot be reversed in a later period..
can be reversed in a later period but only to the upper limit of the original write down.
can be reversed in a later period so long as the value is recovered within 2 years of the original write down.
Question 23
Inventories are to be measured at the lower of cost or net realisable value. Net realisable value is defined in AASB 102/IAS 2
Inventories as:
the fair value of the inventories at purchase date.
the amount paid for the purchase of the inventories in an arm's length transaction.
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.
O the estimated buying price in the ordinary course of business.
O O
Transcribed Image Text:Question 17 AASB 102 Inventories specifies that the measurement rule for inventories is: higher of initial cost and realisable value. higher of production costs and selling price. lower of fair value and selling price. lower of cost and net realisable value. Question 18 The write down of inventories to net realisable value in a prior period: can be reversed in a later period with no upper limit from a previous write down. cannot be reversed in a later period.. can be reversed in a later period but only to the upper limit of the original write down. can be reversed in a later period so long as the value is recovered within 2 years of the original write down. Question 23 Inventories are to be measured at the lower of cost or net realisable value. Net realisable value is defined in AASB 102/IAS 2 Inventories as: the fair value of the inventories at purchase date. the amount paid for the purchase of the inventories in an arm's length transaction. 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. O the estimated buying price in the ordinary course of business. O O
Expert Solution
steps

Step by step

Solved in 4 steps

Blurred answer
Knowledge Booster
Public Issue
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education