Why are inventories valued at the lower-of-cost-or-net realizable value (LCNRV)? What are the arguments against the use

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Why are inventories valued at the lower-of-cost-or-net realizable value (LCNRV)? What are the arguments against the use of the LCNRV method of valuing inventories?

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Intermediate Accounting IFRS

ISBN: 978-1119372936

3rd edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

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Question Posted: Nov 23, 2017 08:34 AM

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Why are inventories valued at the lower-of-cost-or-net realizable value (LCNRV)? What are the arguments against the use

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The usual basis for carrying forward the inventory to the next period is cost Departure from cost is required however when the utility of the goods in...View the full answer

Intermediate Accounting IFRS

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