Closing inventory under IAS 2 should be valued at:
ACost only
BNet realisable value only
CLower of cost and NRVCORRECT
DHigher of cost and NRV
CIBNFinancial Accounting
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Why the answer is C, and why the others tempt you.
IAS 2: lower of cost and NRV — applies prudence and prevents asset overstatement.
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