Inventories - net realizable value

[lego]

Some background.

Company has 80% production costs and 20% non production costs (general administration...). Now we are calculating net realizable value of inventories and come to figure 82% - value of inventories in sales prices. Is the 80% of sales prices max, or we can go higher. But in case my inventories are valued at 82% of sales prices I would make lose since I am not covering all my costs.

Next to that, is there any standard that would deal with non production costs (IFRS)?

lego

 

[Fidget]

You have to record inventory at the *lower* of cost & NRV as per IAS 2, and it's rather explicit about it as well, so if your NRV is higher, then you need to record it at cost.

There isn't a stand-alone standard that deals with non production costs.