Answer (A) is correct . Under IFRS, a write-down of inventory may be reversed in subsequent periods but not above the original cost. The write-down and reversal of inventory are recognized in profit or loss.
Answer (B) is incorrect because A write-down of inventory is recognized in profit or loss, not in OCI, and it may be reversed in subsequent periods.
Answer (C) is incorrect because The write-down of inventory is recognized initially as a loss in profit or loss. Thus, it decreases retained earnings (an equity amount), only indirectly.
Answer (D) is incorrect because Under IFRS, a write-down of inventory may be reversed in subsequent periods but not above original cost.
|
