alleryStart learning →At what value are inventories carried under AS 2?
ALower of cost and NRV
BHigher of cost and NRV
CSelling price always
DReplacement cost always
Answer & Solution
Correct answer: A. Lower of cost and NRV
AS 2 requires stock to be shown at the lower of its cost and its net realisable value, so profits are not overstated.
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