Under IFRS,inventory Write-Downs Due to Using the Lower-Of-Cost-Or-Market Rule Are

question 23

True/False

Under IFRS,inventory write-downs due to using the lower-of-cost-or-market rule are allowed to be reversed in a future year if the market value subsequently increases.

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Definitions:

Treasury Stock

An alternative term for treasury shares, referring to stocks that a company has repurchased and holds, reducing the amount of outstanding stock on the market.

Closing Entries

Made at the end of the accounting period to transfer balances in temporary (income statement) accounts to Retained Earnings and to establish a zero balance in each of the temporary accounts for beginning the next accounting period.

Account Balances

The total amount of money in an account at a certain point in time, which can represent assets or liabilities depending on the account type.

Temporary Accounts

Accounts that are cleared out at the end of each accounting period, including revenues, expenses, and dividends accounts.