Both Accounting Standards for Private Enterprises (ASPE)and International Financial Reporting

Both accounting standards for private enterprises (ASPE)and international financial reporting standards (IFRS)follow the lower-of-cost-and-net-realizable-value rule to value inventory when market prices are changing. Explain how this relates to the accounting guideline of conservatism. Your answer should include a discussion of both conservatism and 'lower of cost and net realizable value'.

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