Question: Fine Leather Ltd had the following inventory at December 31

Fine Leather Ltd. had the following inventory at December 31, 2014:
1. Determine the value of ending inventory that should be reported on the statement of financial position by applying the LCNRV rule to
a. Each item of inventory
b. Each major category of inventory
c. Total inventory
2. Which of the computations in (1) results in the lowest net earnings for 2014? Explain.
3. Which level of inventory aggregation (individual item basis, major categories, or total inventory) is permitted by IFRS? Why are the other levels of aggregation not acceptable? Explain.

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