Inventory - cost versus NRV: write-downs (for the CFA Level 1 exam)

Inventory Measurement - Cost versus NRV: write-downs (for the CFA Level 1 exam) explores the subsequent measurement of inventory under IFRS. We discuss the need to present inventory at the lower of cost and net realisable value (NRV) and present how a write-down is performed when NRV is lower than cost. This video explores topics covered in Lesson 2, Learning Module 6 of the Financial Statements Analysis section of the 2026 CFA Level 1 Curriculum. LOS: describe the measurement of inventory at the lower of cost and net realisable value and its implications for financial statements and ratios For a comprehensive directory of all videos featured on this channel, please visit the channel companion website: www.letmeexplain.eu Let me Explain is a CFA Institute Prep Provider. Only CFA Institute Prep Providers are permitted to make use of CFA Institute copyrighted materials which are the building blocks of the exam. We are also required to create / use updated materials every year and this is validated by CFA Institute. Our products and services substantially cover the relevant curriculum and exam and this is validated by CFA Institute. In our advertising, any statement about the numbers of questions in our products and services relates to unique, original, proprietary questions. CFA Institute Prep Providers are forbidden from including CFA Institute official mock exam questions or any questions other than the end of reading questions within their products and services. CFA Institute does not endorse, promote, review or warrant the accuracy or quality of the product and services offered by Let me Explain. CFA Institute®, CFA® and “Chartered Financial Analyst®” are trademarks owned by CFA Institute.