General

Reversal of Inventory Write-Down (IFRS)

Increasing the value of inventory back up if its market price recovers (Not allowed under US GAAP, but allowed under IFRS).

Account NameTypeDebit ($)Credit ($)
Merchandise InventoryAsset (+)500.00-
Recovery of Inventory LossRevenue/Expense (-)-500.00

💡 Accountant's Note

If you wrote down stock last year because it was 'obsolete' but it suddenly becomes valuable again, IFRS allows you to reverse that loss up to the original cost.

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QA

Expert Analysis by Qusai Ahmad

General Accountant Supervisor & IFRS Specialist

Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.

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