When the net realisable value of inventories falls below cost, the difference is expensed. This assessment is particularly important for obsolete, damaged or discounted inventories.
Source: TAS 2
Related terms
Inventories (TAS 2)Assets held for sale in the ordinary course of business, in the process of production, or as raw materials and supplies to be used in production.Accounting policiesThe specific principles, bases, conventions, rules and practices an entity applies in preparing its financial statements.Amortised costThe amount at which a financial asset or liability is measured at initial recognition, minus principal repayments, plus cumulative amortisation calculated using the effective interest method.AssociateAn entity over which the investor has significant influence but not control or joint control.BOBİ FRS (Turkish GAAP for SMEs)The financial reporting standard issued by the POA for large and medium-sized entities that are subject to independent audit but do not apply TFRS.Business combinationA transaction or event in which an acquirer obtains control of one or more businesses.
Last updated: October 22, 2026 · This definition is for general information only.