AASB 102 - Inventories - July 2004
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Alternative Solutions
BC10 The Board considered developing a proposed solution only in respect of long-lived inventories held for distribution by not-for-profit entities in order to address the practical problems raised by constituents. However, the Board concluded that it would be more appropriate to develop a solution for all types of inventories held for distribution by not-for-profit entities that addresses the issues at both the principle and practical levels. This is because the Board prefers a solution based on a high-level principle that can be applied consistently by all not-for-profit entities in a manner that best suits the character of their inventories held for distribution.
BC11 Among the possible solutions considered by the Board was applying an AASB 136 Impairment of Assets-style impairment test, however, it was noted that this would have many of the problems already associated with the existing requirements.