BC6 The Exposure Draft proposed excluding from the scope of the Standard inventories of non‑producers of agricultural and forest products and mineral ores to the extent that these inventories are measured at net realisable value in accordance with well‑established industry practices. However, some respondents disagreed with this scope exemption for the following reasons:
(a) the scope exemption should apply to all types of inventories of broker‑traders;
(b) established practice is for broker‑traders to follow a mark‑to‑market approach rather than to value these inventories at net realisable value;
(c) the guidance on net realisable value in IAS 2 is not appropriate for the valuation of inventories of broker‑traders.
BC7 The Board found these comments persuasive. Therefore it decided that the Standard should not apply to the measurement of inventories of:
(a) producers of agricultural and forest products, agricultural produce after harvest, and minerals and mineral product
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