CERTYNEX IFRS ACADEMY

For its inventories, Valtrenne writes: "Our net realisable value is a fair value within the meaning of IFRS 13, so we apply the IFRS 13 framework." What is the error?

IFRS 13 never applies to inventories because they are not financial instruments.

Fair value is not a concept applicable to inventories, which are current assets.

Inventories are always measured at cost, never at a market value.

The net realisable value of IAS 2 is a measure close to fair value but is not fair value.