IFRS Requires Inventory to Be Written Down Below Its Original

question 40

True/False

IFRS requires inventory to be written down below its original cost in some situations, but inventory cannot be written up above its original cost.

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Definitions:

Capital Gains Tax

A tax on the profit realized from the sale of a non-inventory asset that was greater than the purchase price, typically stocks, bonds, precious metals, and property.

Junk Foods

Foods with low nutritional value, typically high in fats, sugars, salt, and calories.

Health Maintenance Organization

An organization that provides or arranges managed care for health insurance, self-funded healthcare benefit plans, individuals, and other entities, on a prepaid basis.

Preferred Provider Organization

A type of health plan that contracts with medical providers, such as hospitals and doctors, to create a network of participating providers; you pay less if you use providers that belong to the plan’s network.