Which of the Following Is a CORRECT Statement About the Lower-Of-Cost-Or

question 121

Multiple Choice

Which of the following is a CORRECT statement about the lower-of-cost-or market rule?

• A)Under GAAP,once inventory has been written down to market value,the write-downs can be reversed in future periods.
• B)Under GAAP,the lower-of-cost-or-market rule is optional.
• C)Under IFRS,lower-of-cost-or-market write-downs cannot be reversed.
• D)Under IFRS,lower-of-cost-or-market write-downs can be reversed.