CERTYNEX IFRS ACADEMY

In 20X3, Pavane reverses €4,000 of a write-down recognised in 20X2 on rugs still in inventory, as their net realisable value has recovered. How is this reversal presented?

As revenue for 20X3, in the same way as the sales of rugs for the period.

As a reduction in the amount of inventories recognised as an expense in 20X3.

By restating the 20X2 comparative figures, so as to cancel the original write-down retrospectively.

Directly in equity, in reserves, with no effect on profit or loss for 20X3.