Describe the differences in the application of lower of the cost or market consideration between U.S.GAAP and IFRS.

While both U.S.GAAP and IFRS require certain lower of cost or market adjustments, IFRS do not consider ceiling and floor limits, nor is replacement cost considered as a possible market estimate to be compared to historical cost.IFRS, instead, simply compare net realizable value to historical cost.Furthermore, only U.S.GAAP prohibits recording reversals of previous write-downs, while IFRS permit such gains to be recorded in income.IFRS do not provide guidance regarding how inventory write-downs should be disclosed in the income statement.GAAP requires such write-downs to be an adjustment to cost of goods sold.