CERTYNEX IFRS ACADEMY

A trainee at Ardenval claims that the objective of IAS 2 is to present inventories at their expected selling price. How should this be corrected?

No correction: IAS 2 requires inventories to be presented at the expected selling price from the date they are received.

IAS 2 uses the amount paid to the supplier, never taking into account any later decrease in value.

IAS 2 uses the fair value of inventories at each reporting date, with differences taken to equity.

IAS 2 deals with the cost carried as an asset until the related revenue is recognised, together with write-downs to net realisable value.