Accounting for IGCSE & O level - Final Statements (Section 13 - No. 29)
Which factors should be considered when determining the value of inventory on the Statement of Financial Position?
The cost of the inventory.
The estimated selling price of the inventory.
Any costs required to make the sale.
The original purchase price of the inventory.
Wyjaśnienie
In the Statement of Financial Position, inventory must be valued at the lower of cost or net realizable value. NRV takes into account both the estimated selling price and costs to sell