Reference no: EM132599524

JB Hi - Fi Ltd has assets with the following costs and fair values as at 30 June 2019:

                                           Assets type Cost                       Fair value

Inventory                    $886,700,000                        $912,000,000

Machinery                     $40,800,000                          $46,000,000

Total                            $927,500,000                          $958,000,000

The company decided.to measure the assets at cost and therefore disclosure the assets in the statement of financial position (balance sheet) at an amount of $927.5 million despite the fact that it could receive $958 million at the time if it sold them.

Question 1) Would such financial statements be true and fair if the assets were disclosed at a total of $927.5 million?

Question 2) Would such financial statements be true and fair if the assets were disclosed at a total of $958 million?