Transfer from IAS 2 to IAS 16

[rabih]

Hello,

If we have a certain inventory where we used to record at NRV due to one of the many reasons (slow moving, dormant etc...). At a certain point, a decision was made to transfer this inventory to assets; accordingly it should be recognised under IAS 16 rather than IAS 2.
Shall this item be recorded at its historical/initial cost under "inventory" (excluding any provisions recorded) or shall be recorded at the cost (NRV) on the date it was transferred to assets?

Thank you!

Rabih

 

[Abdul Wahab]

Asset will be recorded at NRV Plus to bring the asset into working condition.
After recognition company will decide whether it will use cost model or revaluation model.