Under which financial reporting standards is a firm required to discuss the circumstances when reversing an inventory writedown? A. Both IFRS and U.S. GAAP. B. IFRS, but not U.S. GAAP. C. Neither IFRS nor U.S. GAAP.
Reversals of inventory writedowns are permitted under IFRS but not under U.S. GAAP. If an IFRS reporting firm reverses an inventory writedown, the firm is required to discuss the circumstances of the reversal.
