IFRS Fact Check (ACCA FA)

Exercise and reference answers

Questions

1. Statement is true

   Yes

   Statement

   Inventory is valued at the lower of cost and net realisable value.

2. Statement is true

   No

   Statement

   LIFO is a permitted cost formula under IFRS.

3. Statement is true

   Yes

   Statement

   Net realisable value is selling price less costs to complete and sell.

4. Statement is true

   Yes

   Statement

   FIFO is an acceptable cost formula under IFRS.

5. Statement is true

   No

   Statement

   Inventory may be carried above cost if prices rise.

Instructions

True if the IFRS inventory statement is correct.