GuideFoot - Learn Together, Grow Smarter. Logo

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.
;

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

Related Questions in Business

📝 Answered - When the yield to maturity of a bond goes up, the price typically: A. is determined by market factors B. goes down C. does not change D. goes up

📝 Answered - A type of life insurance policy that requires premiums only for a specified number of years or to a specific age is called a: A. term life policy B. limited pay policy C. key man insurance policy D. split dollar policy

📝 Answered - Which of the following correctly explains how the concept of demand affects the change in use of credit? Select the two correct answers. A. High interest rates yield low demand for credit. B. Low interest rates yield high demand for credit. C. High interest rates yield high demand for credit. D. Low interest rates yield low demand for credit. E. Both low and high interest rates yield low demand for credit because consumers see it as an indicator that the market is not in equilibrium. Demand is highest when rates are neither too high nor too low.

📝 Answered - A company is researching mining at four different land areas using different types of equipment. The table below shows the costs of land, equipment, mining, and reclamation for the four locations: | Locations | Cost of land | Cost of equipment | Cost of mining and reclamation | Time taken to mine the area | | --------- | ------------ | ----------------- | -------------------------------- | --------------------------- | | 1 | $100,000 | $10,000 | $5,000 per day | 30 days | | 2 | $35,000 | $6,000 | $4,500 per day | 45 days | | 3 | $30,000 | $7,500 | $3,500 per day | 120 days | | 4 | $40,500 | $8,000 | $7,000 per day | 65 days | Considering all costs, which location will cost the least for the company to mine? A. Location 1 B. Location 2 C. Location 3 D. Location 4

📝 Answered - Internal-operational communications are messages that A. are circulated both inside and outside a business B. get an organization's work done C. are sent between competing organizations within the same industry D. employees send to discuss strictly personal matters