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 Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Merchandise Inventory | Asset (+) | 500.00 | - |
| Recovery of Inventory Loss | Revenue/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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