Retail
Recovery of Inventory Write-Down (IFRS)
Increasing the value of inventory back to its original cost because the market price recovered.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Merchandise Inventory | Asset (+) | 400.00 | - |
| Inventory Loss Reversal (COGS) | Expense (-) | - | 400.00 |
💡 Accountant's Note
Under IFRS, if you wrote down stock due to a price drop but the price goes back up, you must 'reverse' the loss. Note: This is NOT allowed under US GAAP.
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