i) Net realisable value (NRV) determination:
Net realisable value is defined in IAS 2: Inventories as the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale.

ii) Audit procedures to ensure NRV is at or above cost:

1. Procedure: Obtain actual sales prices after year-end by examining sales invoices and verifying sales were genuine by vouching to orders and receipts of cash.
   Objective: To assess whether the actual sales prices support the estimated NRV.
2. Procedure: Review sales reports from sales staff and management discussions regarding slow-moving or obsolete inventory items to determine NRV.
   Objective: To confirm whether inventory items can still be sold at or above cost, particularly for slow-moving stock.
3. Procedure: Examine the company’s records for any costs to complete the production of unfinished inventory.
   Objective: To determine whether the estimated completion costs exceed the inventory’s potential sale price.
4. Procedure: Assess the percentage relationship between sales and selling/distribution costs, and consider if special adjustments are needed for specific inventory, like heavy books with higher distribution costs.
   Objective: To ensure that selling and distribution costs are appropriately considered when determining NRV.