6.1 IAS 2 Inventories prescribes the accounting treatment for inventories under the historical cost system. Briefly

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6.1 IAS 2 – Inventories prescribes the accounting treatment for inventories under the historical cost system. Briefly explain how IAS 2 requires the following to be dealt with:

(a) The determination of the lower of cost and net realisable value.

(b) The identification of costs when there are large numbers of items which are ordinarily interchangeable.

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Financial Accounting An International Approach

ISBN: 9780273693192

1st Edition

Authors: Prof Jagdish Kothari, Elisabetta Barone, Barone Kothari

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