Although IFRS require the use of the lower of cost or market method to value inventory, some differences from GAAP still exist.Which of the following is not one of the differences?

A) Market is defined only as net realizable value in IFRS.
B) When write-downs occur, IFRS do not specify how the loss must be categorized in the income statement.
C) IFRS allow the reversal of a previous write-down.
D) IFRS define market only as replacement cost.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that serves as a global framework for financial reporting.

GAAP

Generally Accepted Accounting Principles, a set of rules and standards used for financial reporting and accounting in the U.S.

Net Realizable Value

The estimated selling price in the ordinary course of business minus the estimated costs of completion and the necessary costs to make the sale.