Asked by Gerson Torres on Jun 27, 2024
Verified
Certain agricultural and mineral products can be reported at net realizable value 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
Net Realizable Value
The estimated selling price in the ordinary course of business minus any costs necessary to make the sale.
- Explain the concepts of lower-of-cost-or-market and net realizable value and their application in inventory valuation.
Verified Answer
CT
Learning Objectives
- Explain the concepts of lower-of-cost-or-market and net realizable value and their application in inventory valuation.
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