One Difference Between IFRS and GAAP in Valuing Inventories Is

question 66

Multiple Choice

One difference between IFRS and GAAP in valuing inventories is that

• A) Under IFRS, but not GAAP, inventories written down under LCNRV can be written back up to the original cost.
• B) GAAP defines market value as replacement cost where IFRS defines market as the selling price.
• C) GAAP strictly adheres to the historical cost concept and does not allow for write-downs of inventory values.
• D) IFRS, but not GAAP, requires that inventories be valued at the lower of cost or market.

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Definitions:

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