Do U$.$S$.$ GAAP and IFRS treat inventory$$write$-$downs the same$$way$?$ Explain.

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Part $1$

A$.$

No$.$ Under U$.$S$.$GAAP$,$ once inventory is written down it can never be written back up even if its market value increases. Under$$IFRS$,$ inventory can be written back$$up$,$ but only to the extent of original cost if its market value has increased.$$NRV$,$ the estimated selling price less the estimated costs of completion and$$sale$,$ is the same value under IFRS and U$.$S$.$ GAAP.

B$.$

Yes. Under both U$.$S$.$ GAAP and$$IFRS$,$ inventory can be written back$$up$,$ but only to the extent of original cost if its market value has increased.$$However$,$ the value of$$NRV$,$ the estimated selling price less the estimated costs of completion and$$sale$,$ is not the same value under IFRS and U$.$S$.$ GAAP.

C$.$

Yes. Under both U$.$S$.$ GAAP and$$IFRS$,$ inventory can be written back$$up$,$ but only to the extent of original cost if its market value has decreased.$$However$,$ the value of$$NRV$,$ the estimated selling price less the estimated costs of completion and$$sale$,$ is not the same value under IFRS and U$.$S$.$ GAAP.

D$.$

No$.$ Under$$IFRS$,$ once inventory is written down it can never be written back up even if its market value increases. Under U$.$S$.$GAAP$,$ inventory can be written back$$up$,$ but only to the extent of original cost if its market value has increased.$$NRV$,$ the estimated selling price less the estimated costs of completion and$$sale$,$ is the same value under IFRS and U$.$S$.$ GAAP.