IAS 2 Inventories Flashcards
1
Q
Definition of Net Realisable Value
A
The estimated selling price in the ordinary course of business less the costs of completion and costs of sale.
NRV will be determined on the basis of conditions which existed at the date of fs.
2
Q
The NRV will be based upon?
A
the most realiable estimate of the amounts which will be realised for the coal
3
Q
Can NRV be calculated using the forecast market price?
A
Yes, upon the inventory is expected to be processed and realised. Future changes in the forecast market price or the processing and sale of the low carbon may result in adjustments to the NRV and can be realised to PnL.
