Question

Inventories are defined by IFRS as held-for-sale a. in the ordinary course of business. b. in the process of production for sale in the ordinary course of business. c. in the form of materials or supplies to be consumed in the production process or in the providing of services. d. all of these answer choices are correct.

Answer 1

Answer:

d. all of these answer choices are correct.

Explanation:

As per international financial reporting standard (IFRS), the term "inventory" is defined as assets

• which are held for sale in the ordinary course of business
• which are in the process of production for sale
• in the form of materials or supplies which would be consumed in the production process.

Thus, as per the given information, all of the alternatives provided, comprise of the definition of "inventory".

As per the rules, inventories are to be recorded at cost price or net realizable value whichever is lower.