CERTYNEX IFRS ACADEMY

The Jilval group holds two families of inventories of different nature and use; the applicable standard allows different cost formulas in that case (context data). Jilval applies FIFO to the first family and weighted average cost to the second, every year. How should this practice be described?

Non-compliant, unless the difference between the two formulas is immaterial.

Compliant: each permitted category follows a policy applied consistently.

Compliant only if the auditor approved each formula.

Non-compliant: one entity may use only one cost formula.