Q. Because of a problem with the production process, a manufacturer produced a batch of defective finished goods with a total cost of $18,000. The sales value of this batch in its current condition is $6,000. With $3,000 of additional processing, however, the batch could be sold for $11,000. The value of the unsold inventory, on the balance sheet of a company using International Financial Reporting Standards (IFRS), is closest to:
- $9,000.
- $8,000.
- $11,000.
Solution
B is correct. Under IFRS, inventory is carried at the lower of cost and net realizable value (NRV). The company would logically choose to sell the batch at its highest realizable value.
老师，我没有懂为什么不是6000？谢谢
