CERTYNEX IFRS ACADEMY

The Silexmine group extracts zinc ore. Once extracted, the ore's sale is assured under a forward contract, and the group measures it at net realisable value, in accordance with a well-established practice in its industry. How are these inventories treated under IAS 2?

They are measured at the lower of cost and net realisable value, like all inventories within the scope of the standard.

They remain within the scope of the standard but are outside its measurement requirements; changes in value go to profit or loss.

They are entirely excluded from IAS 2, since their sale is guaranteed by a forward contract concluded with a buyer.

They are outside the measurement requirements, and changes in value are taken directly to equity.