IFRS/AASB standards state that you must hold inventory on your balance sheet at lower of either value in use or cost
So if the inventory becomes useless (ie. expires or you can no longer sell the inventory) then you must write off the value to zero
otherwise it is valued at cost (and you always try to shove as much of your costs in as possible (ie. overheads and other non-direct recoveries) to make your balance sheet look as favourable as possible
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