- CFA Exams
- CFA Level I Exam
- Topic 4. Financial Statement Analysis
- Learning Module 6. Analysis of Inventories
- Subject 1. Inventory Valuation
CFA Practice Question
Is the reversal of an inventory write-down permitted under U.S. GAAP and IFRS?
B. Yes, under both.
C. Yes, under IFRS, but not under U.S. GAAP.
A. No, under both.
B. Yes, under both.
C. Yes, under IFRS, but not under U.S. GAAP.
Correct Answer: C
The reversal of an inventory write-down is permitted under IFRS but not under U.S. GAAP.
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