alleryStart learning →On what basis must inventories be measured under Ind AS 2?
AReplacement cost at the reporting date
BHigher of cost and net realisable value
CFair value at each reporting date
DLower of cost and net realisable value
Answer & Solution
Correct answer: D. Lower of cost and net realisable value
Inventories are carried at the lower of cost and NRV so that assets are not shown above the amount they can realise.
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