CERTYNEX IFRS ACADEMY

During the year-end physical count, the hardware store Brassac finds that goods have disappeared following a theft. When is the corresponding loss of inventories recognised as an expense?

In the period in which the loss occurs.

When the other items of the same batch are sold, the loss remaining in inventories until then.

In equal portions over the following three years, so as to smooth the effect on profit.

As a reduction of opening equity, without going through profit or loss for the year.