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When should you post the write-down for inventories?

Publication date: 2013-03-04 19:06:24

Provisions for inventories should be made as a result of impairment or as a result of valuation to net realisable prices in place of purchase prices or manufacturing costs.
The principle of prudent valuation requires updates of asset valuation => update of asset value (IAS 2 par 28,33)
Recorded prices of inventories "purchase or manufacturing costs" may not be higher than the net realizable prices NRV (IAS 2 par. 9),

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Regards,
Sławomir Ekman
24iValue

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