Under IAS 2, What Adjustment Needs to Be Made After

question 41

Multiple Choice

Under IAS 2, what adjustment needs to be made after an inventory write-down if the selling price subsequently increases?

• A) No adjustment is necessary. Once inventory is written down, it cannot be increased under IASB standards.
• B) It should be sold at the replacement cost.
• C) The inventory write-down should be reversed to bring it in line with the new net realizable value.
• D) Recovery of inventory loss should be debited to reflect the increase in inventory value.