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

Related Topics

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.