CERTYNEX IFRS ACADEMY

The management accountant of Pivelle is preparing an internal memo on reversals of inventory write-downs. Select the correct statements.

The reversal may carry the carrying amount above cost when the revised net realisable value exceeds it.

The reversal is limited to the amount of the original write-down.

After the reversal, the carrying amount equals the lower of cost and the revised net realisable value.

Net realisable value is reassessed only when the entity changes accounting policy.

Net realisable value is reassessed in each period.