Question

Which of the following would NOT be included in the definition of inventory under IFRS?

(a) photocopy paper held for sale by an office-supply store.
(b) stereo equipment held for sale by an electronics store.
(c) used office equipment held for sale by the human relations department of a plastics company.
(d) all of the above

Answer 1

Used office equipment held for sale by a department within a company would not be included in the definition of inventory under IFRS.

Step-by-step explanation:

The correct option is (c) used office equipment held for sale by the human relations department of a plastics company.

Under IFRS (International Financial Reporting Standards), inventory includes goods that are held for sale in the ordinary course of business, goods in the process of production, and materials used in the production process.

Used office equipment held for sale by a department within a company would not fall under the definition of inventory because it is not held for sale in the ordinary course of the business.

Examples of items that would be included in the definition of inventory under IFRS include photocopy paper held for sale by an office-supply store and stereo equipment held for sale by an electronics store.