Where the Net Realisable Value of Inventory Falls Below Cost

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

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

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