a.

Question

Treated as a deferred expense and written off based on the average inventory holding period.

b.
Recognise as an expense in the period in which the write-down occurs.

c.
Recognised as an expense in the subsequent period in which such write-down is warranted.

d.
Recognized as a current liability in the Statement of Financial Position

Answer 1

e. Recognized as a reduction of inventory in the Statement of Financial Position.