<P> Under IFRS , companies need to record the cost of their Ending Inventory at the lower of cost and NRV , to ensure that their inventory and income statement are not overstated ( under ASPE , companies record the lower of cost and market value ) . For example , under IFRS , at a company 's year end , if an unfinished good that already cost $25 is expected to sell for $100 to a customer , but it will take an additional $20 to complete and $10 to advertise to the customer , its NRV will be $100 - $20 - $10 = $70 . In this year 's income statement , since the cost of the good ( $25 ) is less than its NRV ( $70 ) , the cost of the good will get recorded as the cost of inventory . In next year 's income statement after the good was sold , this company will record a revenue of $100 , Cost of Goods Sold of $25 , and Cost of Completion and Disposal of $20 + $10 = $30 . This leads to a profit of $100 - $25 - $30 = $45 on this transaction . </P>
<P> Under IFRS , companies need to record the cost of their Ending Inventory at the lower of cost and NRV , to ensure that their inventory and income statement are not overstated ( under ASPE , companies record the lower of cost and market value ) . For example , under IFRS , at a company 's year end , if an unfinished good that already cost $25 is expected to sell for $100 to a customer , but it will take an additional $20 to complete and $10 to advertise to the customer , its NRV will be $100 - $20 - $10 = $70 . In this year 's income statement , since the cost of the good ( $25 ) is less than its NRV ( $70 ) , the cost of the good will get recorded as the cost of inventory . In next year 's income statement after the good was sold , this company will record a revenue of $100 , Cost of Goods Sold of $25 , and Cost of Completion and Disposal of $20 + $10 = $30 . This leads to a profit of $100 - $25 - $30 = $45 on this transaction . </P>
under ifrs what is the company 's year-end inventory balance
under ifrs what is the company 's year-end inventory balance
the lower of cost and NRV
the lower of cost and NRV