Why and by how much the staghorn inventory needs to be

Question

Required:

As the External Auditor and using a standard format memo (i.e. a short report of 1/2 to 1 1/2 pages) please explain to Mr David Buttoner:

1)           Whether the staghorn inventory meets the definition of an Inventory (cite the AASB Handbook section),

2)           The current fill-absorption amount of the staghorn button inventory in the Books-of­Account.

3)           Why and by how much the staghorn inventory needs to be written-down (please justify the write-down; e.g. the Lower of Cost or Market; cite the AASB Handbook section; and show calculations to justify your amount).

This is to be answered in your groups of 3-6 students, where each group will submit one report with the names and student numbers of all group members in the heading. The assignment is due 14 May/14, in class.