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What is the appropriate treatment in an interim financial report for inventory that has cost below market value?

a) the loss should always be recorded in the interim period in which cost drops below market value.

b) the loss should be recorded in the interim period in which cost drops below market value if the loss is considered temporary.

c) the loss should be recorded in the interim period in which cost drops below market value if the loss is considered permanent

d) the loss should be ignored for interim reporting purpose

e) there is no loss to report

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M955886

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