CERTYNEX IFRS ACADEMY

You are reviewing Fabrimo's note on inventories for 20X2. Data: materials are measured using the first-in, first-out (FIFO) formula and finished goods using weighted average cost (case data); write-downs of €14,000 were recognised; a reversal of €6,000 was recorded following the recovery of the copper price; inventories of €200,000 secure a bank loan. Select the correct statements on the content of the note.

The note may be limited to the net amount of €8,000 between the write-downs and the reversal.

The note discloses the amount of the reversal of €6,000 and the recovery of the copper price that caused it.

The note discloses the carrying amount of €200,000 of inventories pledged as security.

Pledged inventories need not be mentioned since the bank loan is presented among liabilities.

The accounting policies describe both cost formulas used, FIFO for materials and weighted average cost for finished goods.