Answer (C) is correct . Inventory is measured at the lower of cost or NRV (estimated selling price in the ordinary course of business – estimated costs of completion and sale). Given cost of $100,000 and NRV of $90,000, inventory should be reported at $90,000. The write-down of $10,000 is recognized as a loss in the current period.
Answer (A) is incorrect because Current replacement cost ($70,000) is neither cost nor NRV.
Answer (B) is incorrect because The lower of cost or market ($85,000) is the appropriate measure under GAAP.
Answer (D) is incorrect because Fair value is greater than NRV.
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Under IFRS, what amount should the company report as inventory on its balance sheet?
