Chartered Financial Analyst Level 1
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An analyst gathers the following information (in € thousands) about an electronics manufacturing company's inventory: Cost of ending inventory: 3,600 Net realizable value: 3,300 Current replacement cost: 3,200 Net realizable value less a normal profit margin: 3,100 The inventory (in € thousands) is carried on the balance sheet at:
A
3,100, representing the lower of cost and net realizable value less a normal profit margin under US GAAP.
B
3,200, representing the lower of cost and current replacement cost under US GAAP, subject to upper and lower limits.
C
3,300, representing the lower of cost and net realizable value under IFRS.