IFRS permits firms to reverse previous impairments, up to the amount of the original acquisition cost of the inventory, if the circumstances that caused the inventory impairment no longer exist.

Question

Quizplus · Accepted Answer

This is true according to IFRS guidelines. Firms can reverse impairments of inventory if it is justified by the current economic circumstances and the cause of the impairment no longer exists. The reversal amount cannot exceed the original acquisition cost of the inventory.

IFRS Permits Firms to Reverse Previous Impairments, Up to the Amount