| Q.77 | Which of the following statements is correct in the context of inventory valuation? | |
| Ans | A. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. | |
| B. As per IND AS 2 provisions, inventories of similar nature and use to the entity, held at different geographical locations, can use different cost formula for inventory valuation purposes. | ||
| C. As per IND AS 2, selling costs are included in the cost of inventories and are required to be recognised as an expense in the period in which these are incurred. | ||
| D. Cash discount is a reduction granted by a supplier from the list price of goods or services on business considerations other than for prompt payment. |
Correct Ans Provided: A
