This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

Deloitte comment letter on tentative agenda decision on costs necessary to sell inventories

Published on: 14 Apr 2021

We have commented on the IFRS In­ter­pre­ta­tions Committee's pub­li­ca­tion in the February 2021 IFRIC Update of the tentative decision not to take onto the Committee’s agenda the request for clarification about the costs an entity includes as the ‘estimated costs necessary to make the sale’ when determining the net realisable value of inventories.

We do not agree with the IFRS Interpretations Committee’s decision not to add this item onto its agenda as we do not agree with the conclusion that has been reached in the agenda decision, both on technical and practical grounds. In addition, we believe that it is reasonable to assert that the costs necessary to sell inventories should only include incremental costs and that the estimated costs necessary to make the sale when determining the net realisable value of inventories should be limited to incremental costs.

Download

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.