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