Which of the following is true regarding the differences between ASPE and IFRS regarding inventory valuation?
A)Both allow a reversal of write-down and writing up of inventory to its original cost after a write down because of LC&NRV rule.
B)Neither of them allows a reversal of write-down and writing up of inventory to its original cost after a write down because of LC&NRV rule.
C)Only ASPE allows a reversal of write-down and writing up of inventory to its original cost after a write down because of LC&NRV rule.
D)Only IFRS allows a reversal of write-down and writing up of inventory to its original cost after a write down because of LC&NRV rule.

Question

Quizplus · Accepted Answer

Only IFRS allows for the reversal of inventory write-downs if the reasons for the write-down no longer exist, reflecting an increase in the value of inventory up to the amount of the original write-down. ASPE does not permit such reversals.

Which of the Following Is True Regarding the Differences Between