Neither GAAP nor IFRS allow inventory to be adjusted upward beyond the original cost.

Name: Neither GAAP nor IFRS allow inventory to be adjusted upward beyond the original cost.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Both GAAP and IFRS do not allow upward adjustments of inventory beyond the original cost as it violates the principle of conservatism. However, under certain circumstances, inventory can be adjusted downward to reflect a lower value than its original cost.

Neither GAAP nor IFRS Allow Inventory to Be Adjusted Upward