Invetories (29)

Question 1

Under IFRS, how can inventory be valued for reversal of writedown?

Answer 1

At a minimum of cost or net realizable value. Reversal of writedown cannot exceed original cost.

Question 2

What is included in inventory cost?

Answer 2

Costs of purchase, cost of conversion, costs of brining inventories to business location.

Not included: excess waste, storage coasts that are not part of production, transportation costs shipping to customers.