alleryStart learning →At what value are inventories to be carried under AS 2?
AHigher of cost and net realisable value
BSelling price less normal profit margin
CLower of cost and net realisable value
DReplacement cost at the balance sheet date
Answer & Solution
Correct answer: C. Lower of cost and net realisable value
AS 2 adopts conservatism by carrying stock at the lower of what it cost and what it can realise.
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