The Saudi Organization for Chartered and Professional Accountants expressed its views on the initial decision of the International Interpretations Committee on the costs of selling inventory, which decided in principle that the costs of selling the inventory that must be deducted from the expected selling price to reach the net realizable value are not limited to the additional costs associated with the sale transaction, but rather all selling costs. Even if it isn't related to selling a specific item in the inventory.
SOCPA mentioned that international standards based on principles are interrelated with each other, and if a term is mentioned in a specific standard without a definition, then its definition should be considered in another standard as an application of the requirements of the International Accounting Standard No. 8 on topics that are not covered by a particular standard.
Since the "cost of selling" is defined in several criteria, and not defined in the inventory standard, what the committee decided in principle may not have a conceptual basis in light of the absence of the inventory standard defining the cost of selling.
To view the details of SOCPA viewpoint, click here.