Inventory Write-Down
I hope you can answer some of my questions related to IFRS – inventory write-down.
Case:
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.
Thanks,
Raymond
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.
Antonello
Hello all,
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.
Regards,
Veronique
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