Reversal of a Previous Inventory Write Down Is Not Advocated

question 31

True/False

Reversal of a previous inventory write down is not advocated in AASB 102.

---

Definitions:

Reward-to-Variability Ratio

A ratio used to evaluate the return of an investment relative to its risk, with a higher ratio indicating a more favorable risk-reward profile.

Risk-free Rate

A presumed income from an investment that is free from any financial risk, typically reflected through government bond yields.

Efficient Frontier

A set of optimal portfolios that offer the highest expected return for a defined level of risk or the lowest risk for a given level of expected return, used in modern portfolio theory.

Expected Return

The projected profitability of an investment over a given period.