Shake Company's Inventory Experienced a Decline in Value Necessitating a Write-Down

Multiple Choice

Shake Company's inventory experienced a decline in value necessitating a write-down to lower of cost or net realizable value (LCNRV) of €230,000. This amount is material to Shake's income statement and the company follows IFRS. Where should Shake Company report this decline in value according to IFRS?
I. As a loss on the income statement.
II. As a separate component of other comprehensive income on the statement of comprehensive income.
III. As part of cost of goods sold on the income statement.

A) Shake must use I.
B) Shake must use I, II or III.
C) Shake must use I, or III.
D) Shake must use III.