Asked by Vritra Official on Jun 15, 2024
Verified
The option to value inventory at fair value exists under GAAP ‾ IFRS ‾\begin{array} { l l l } & \underline{ \text {GAAP }} & \underline{ \text { IFRS }} \\\end{array}GAAP IFRS
A) Yes No \begin{array} { l l l } &\text { Yes } & &\text { No } \\\end{array} Yes No
B) Yes Yes \begin{array} { l l l } &\text { Yes } && \text { Yes } \\\end{array} Yes Yes
C) No No \begin{array} { l l l }& \text { No } && \text {No } \\\end{array} No No
D) No Yes \begin{array} { l l l } &\text { No } && \text {Yes }\end{array} No Yes
Fair Value
The estimated market value of an asset or liability, based on current market prices.
- Comprehend different methods of valuing inventory and their effects on financial statements.
- Elucidate the principles of lower-of-cost-or-market and net realizable value, along with how they are applied in the valuation of inventory.
Verified Answer
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Learning Objectives
- Comprehend different methods of valuing inventory and their effects on financial statements.
- Elucidate the principles of lower-of-cost-or-market and net realizable value, along with how they are applied in the valuation of inventory.
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