At 1 October 2018 Bradley Ltd held inventory with a cost of $800 000 and a fair
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At 1 October 2018 Bradley Ltd held inventory with a cost of $800 000 and a fair value of $1 000 000. In order to hedge against a fall in the fair value of its inventory below $1 000 000 Bradley acquired a derivative. At 31 December 2018 the fair value of the entity's inventory had fallen by $40 000 and the derivative had a value of $40 000
At 31 December 2018 at what value should the inventory be recognised in the financial statements?
Related Book For
International Financial Reporting A Practical Guide
ISBN: 978-1292200743
6th edition
Authors: Alan Melville
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