Core Corp. reports under IFRS and its inventory was written down to $6,500. However, due to a shortage in supply, the Net Realizable Value (NRV) of inventory recently increased to $8,000. Which of the following is most likely the value of the write-up of inventory? A. $1,500 B. $0 C. Cannot be ascertained

The correct answer is A.Under IFRS, the inventory can be written up later if the value of inventory is recovered. Since the NRV of inventory increased from $6,500 to $8,000, there will be a write-up of inventory by $1,500.Note: Under U.S. GAAP, no write-up is allowed.

A CFA Level 1 Discussion About CFA Level 1 Question Of The Week - Financial Reporting And Analysis (inventory)

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- Matt_AnalystPrep
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  13 Mar 2020 at 8:01 am
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  The correct answer is A.
  
  Under IFRS, the inventory can be written up later if the value of inventory is recovered. Since the NRV of inventory increased from $6,500 to $8,000, there will be a write-up of inventory by $1,500.
  
  Note: Under U.S. GAAP, no write-up is allowed.
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