Asked by Vanessa Huynh on Apr 24, 2024
Inventory written down under lower-of-cost-or market may be written back up to original cost in a subsequent period under GAAP ‾ IFRS ‾\begin{array} { l l l } & \underline{ \text {GAAP }} & \underline{ \text { IFRS }} \\\end{array}GAAP IFRS
A) Yes No \begin{array} { l l l } &\text { Yes } & &\text { No } \\\end{array} Yes No
B) Yes Yes \begin{array} { l l l } &\text { Yes } && \text { Yes } \\\end{array} Yes Yes
C) No No \begin{array} { l l l }& \text { No } && \text {No } \\\end{array} No No
D) No Yes \begin{array} { l l l } &\text { No } && \text {Yes }\end{array} No Yes
Lower-Of-Cost-Or-Market
An accounting principle stating that inventory should be recorded at the lower of its historical cost or its current market price.
- Describe the doctrines of lower-of-cost-or-market and net realizable value, pinpointing their employment in determining the value of inventory.
Learning Objectives
- Describe the doctrines of lower-of-cost-or-market and net realizable value, pinpointing their employment in determining the value of inventory.
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