# 80 Subsequent Measurement of Inventory Flashcards
1
Q
Inventory measured using FIFO or average cost utilizes which subsequent measurement of inventory?
A
Lower of cost or net realizable value (LC-NRV)
2
Q
Inventory measured using LIFO or retail method utilizes which subsequent measurement of inventory?
A
Lower of cost or market (LC-M)
3
Q
What is the definition of Net realizable value?
A
Net realizable value is the estimated selling price less reasonably predictable cost of completion, disposal, and transportation.
4
Q
What is the lower of cost or market?
A
Under LC-M, the market value is the middle of the following 3 figures:
- Replacement cost
- Net realizable value
- Net realizable value less normal profit margin
5
Q
Subsequent Measurement of Inventory
How does IFRS report inventory?
A
LC-NRV
