CERTYNEX IFRS ACADEMY

To train the new accountants of Quarzine, the finance director writes statements on the recognition of inventories as an expense. Select those that are correct.

Losses of inventories found during the physical count are deferred until the remaining items of the same batch are sold.

The carrying amount of inventories sold is recognised as an expense in the period in which the related revenue is recognised.

A write-down to net realisable value is an expense of the period in which it occurs.

Inventories used to build an item of property, plant and equipment of the entity are recognised as an expense as soon as they are used.

A reversal of a write-down reduces the amount of inventories recognised as an expense in the period of reversal.