Investor Presentaiton
CAT
THE INSTITUTE OF
CHARTERED ACCOUNTANTS OF SRI LANKA
Measurement
Does NRV and fair value have the same meaning?
No; Fair value is the price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. (See
IFRS 13 Fair Value Measurement.)
NRV refers to the net amount that an entity expects to realize
from the sale of inventory in the ordinary course of business.
Therefore, NRV is an entity-specific value. NRV for
inventories may not equal fair value less costs to sell.
CAT
THE INSTITUTE OF
CHARTERED ACCOUNTANTS OF SRI LANKA
Measurement
Scenario 2:
Per unit details relating to item A is as follows. What would be the
valuation of inventory of item A?
Cost
Selling price
Rs 900/ -
Rs 1,200/-
Estimated modification cost to enable sale
Rs 300/-
Estimated marketing costs
Rs 200/-
Units held
150
10/31/2016
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