I hope you can answer some of my questions related to IFRS – inventory write-down.
Inventory unit cost was $ 15.00 purchase price
Sales price for $35.00 per unit
Total unit at year-end – on hand quantity 1000 units
Forecast 100% stocks classified as non-salesable.
Reserve set up at the end of year was $ 15,000.00
Third party disposition for 1000 units – sales price drop to $10.00 per unit – $10,000.00
What is the accounting treatment for the above transaction under IFRS?
Your input is much appreciated.
A loan can be classified as available for sale in accordance with IAS 39.
A typical example is a syndicated loan where the arranger intends to sell part of (or the full ) amount lent to other counterparties.
The loan shall be accounted for at fair value less any impairment loss.
I think you should first reverse the impairment for 5000. And then recognise the sale for 10 000 together with the cost of sales of 10 000.