Which of the following statements is not true?
A)Both U.S.GAAP and international financial reporting standards (IFRS)require the use of the lower-of-cost-or-market rule to value inventories.
B)U.S.GAAP defines market value as replacement cost.
C)IFRS uses net realizable value with no upper or lower limits imposed.
D)Write-downs of inventory can be reversed in later periods under U.S.GAAP.

Question

Quizplus · Accepted Answer

Under U.S. GAAP, once inventory has been written down, the write-down is considered permanent and cannot be reversed in later periods. This contrasts with IFRS, which does allow for the reversal of inventory write-downs if specific criteria are met.

Which of the Following Statements Is Not True