CERTYNEX IFRS ACADEMY

At the end of 20X1, Brivane reduced an inventory of solar panels with a cost of €90,000 to €70,000, after a collapse in selling prices. At the end of 20X2, the panels are still in inventory; a new public support scheme has clearly pushed prices back up, and net realisable value is estimated at €98,000. Management is hesitating between several treatments. Which one complies with IAS 2?

Carry the panels at €98,000 and recognise a gain of €28,000 in profit or loss.

Carry the panels at €90,000; the reversal of €20,000 reduces the inventory expense of 20X2.

Keep the panels at €70,000, since a write-down recognised in a closed period can no longer be reversed afterwards.

Carry the panels at €90,000 and recognise the reversal of €20,000 directly in other comprehensive income.