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siniylev [52]
3 years ago
10

Eric's Used Book Store prepares its financial statements in accordance with IFRS. Inventory was purchased for €6 million and lat

er marked down to €4 million. One of the books, however, was later discovered to be a rare collectible item, and the inventory is now worth an estimated €7 million. The inventory is most likely reported on the balance sheet at:
Business
1 answer:
andrew-mc [135]3 years ago
4 0

Answer:

€6 million

Explanation:

As we know that

According to the International Financial Reporting Standards, if the net realizable value of the inventory increases then the written down of reversal value is required

And according to the GAAP, the inventory should be valued at lower of cost or net realizable value

So in the given case, the inventory is purchased at €6 million and now it is estimated value is  €7 million so the lower value i.e €6 million should be reported on the balance sheet.

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Explanation:

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Calculations are attached

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Federal spending that is authorized by permanent laws and does not go through the annual appropriation process is called _____ s
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Federal spending that is authorized by permanent laws and does not go through the annual appropriation process is called mandatory spending.

<h3>What does mandatory spending signify?</h3>

Government spending that is subject to eligibility standards established by Congress is known as mandatory spending. Social Security, Medicare, and unemployment insurance are a few examples. All spending that does not occur through appropriations legislation is referred to as mandatory spending. Spending that is necessary includes contributions to entitlement systems like Social Security and Medicare as well as required interest payments on the national debt. Government expenses for legally required programs are considered mandatory spending. Major fiscal trends are heavily influenced by mandatory spending. Government income decrease and spending increases during economic downturns as more people become eligible for required programs like Income Security and Unemployment Insurance. Deficits thus grow or surpluses decline as a result.

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d

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