CERTYNEX IFRS ACADEMY

The trader Ardelle holds 800 tonnes of soybean meal. It has entered into a firm sales contract covering 500 tonnes at a fixed price. On what basis is the net realisable value of the 300 tonnes not covered by this contract estimated?

On the firm contract price, which then applies to the whole inventory held by the trader.

On general selling prices, not on the contract price.

On the replacement cost of the soybean meal at the year-end, the only observable measure for a trader.

On their costs of purchase, since inventories not covered by a contract are not compared with a net realisable value.