IFRS, Like U

question 85

Multiple Choice

IFRS, like U.S. GAAP, require the use of the lower of cost or market method to value inventory, however some differences do exist. Which of the following is not one of the differences?

• A) IFRS eliminate the need to use a ceiling in determining market value.
• B) When write-downs occur, IFRS do not specify how the loss must be categorized in the income statement.
• C) IFRS allow the reversal of a previous write-down.
• D) IFRS define market only as replacement value.

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Definitions:

AASB 137

An accounting standard issued by the Australian Accounting Standards Board relating to provisions, contingent liabilities, and contingent assets.

Direct Restructuring Costs

Expenses directly associated with the process of restructuring a business or organizational operations, separate from indirect or incidental costs.

Indirect Restructuring Costs

Costs associated with reorganizing a business that are not directly connected to the physical process of restructuring, such as financial or reputational impacts.

Professional Judgement

The use of professional knowledge and skills to make decisions and solve problems.