Inventories valuation: apply cost formulas and write down to net realisable value, with industry measurement exemptions recognised in profit or loss. This guidance defines the objective of determining the carrying amount of inventories by applying specified cost formulas and recognising write-downs to net realisable value, notes that inventory valuation affects profit or loss and the balance sheet, and excludes measurement of certain financial instruments, biological assets, producers of agricultural/forest/mineral products and commodity broker traders when those inventories are measured at net realisable value or fair value less costs to sell with changes recognised in profit or loss.