Inventories are to be measured at the lower of cost or net realisable value. Net realisable value is defined in AASB 102/IAS 2 Inventories as:

a.

the amount paid for the purchase of the inventories in an arms length transaction.

b.

the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.

c.

the fair value of the inventories at purchase date.

d.

the estimated buying price in the ordinary course of business