Where the Net Realisable Value of Inventories Falls Below Cost

Where the net realisable value of inventories falls below cost, AASB 102 Inventories requires that:

A) no adjustment be made, but the difference between net realisable value and cost be disclosed in the notes to the financial statements.
B) the difference be added to the carrying amount of the inventories.
C) inventories continue to be carried in the statement of financial position at cost.
D) inventories be written down to net realisable value.

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