How would a company following IFRS recognize the unavoidable costs that exceed the benefits from receiving some contracted goods or services (an onerous contract)? Select answer from the options below 

They record the cost directly to Cost of Goods Sold. 

They capitalize it and set up a corresponding liability until the goods are received. 

They add it to the cost of inventory when the goods are received. 

They recognize it as a loss and set up a corresponding liability until payment is made

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