In October of year one, a firm committed to a purchase of inventory at a total cost of $26,000. The contract is irrevocable and specifies a delivery date in March of year two. At the end of year one, the market value of the inventory under contract is worth $23,000 at current cost. Choose the correct reporting for the year one financial statements:.

According to IAS 36 Impairment of assets says that the asset must be recorded at the lower of:

The lower value is $23,000, which must write off value of inventory with an amount of $3000. So the journal entry would be:

Dr Impairment Losses $3000

Cr        Advances paid for inventory     $3000

This entry is the fair presentation of the actual value of the advances paid.

answer: i'd say the answer is d because the information system is the human already doing the activity.

answer; someone must cover the cost associated with the provision of scarce goods in both sectors;