CERTYNEX IFRS ACADEMY

Conserverie Port-Lazare produces three ranges: canned sardines in three sauces (same purposes, produced and sold in the same geographical area, and which in practice cannot be evaluated separately from one another), soups in cartons and pet food. These ranges belong to two operating segments. At what level should the write-down of the sardines to net realisable value be assessed?

At the level of the sardine line taken together.

At the level of all the finished goods of the cannery, sardines, soups and pet food together.

At the level of the operating segment to which the sardines belong, together with the other products of that segment.

Necessarily can by can and sauce by sauce, as any grouping is prohibited by the standard.