Subject: Global Financial Statement Analysis

Topic: Inventory measurement & reversal of inventory write-down

U.S. Accounting Standards (GAAP) and International Financial Reporting Standards (IFRS) have, historically, set forth varying guidance as it relates to the accounting treatment for Inventory measurement & reversal of inventory write-down. In more recent times, and in light of the increased globalization of large multinational corporations, the FASB and IASB have been working toward converging U.S. and International standards (where it is most appropriate to do so) in order to mitigate financial reporting differences that would otherwise arise as a result of differing standards.

In your opinion, which standard setting body's guidance (FASB (GAAP) or IASB (IFRS)) appears to more fairly present financial statement results as it relates to Inventory measurement & reversal of inventory write-down? Be sure to adequately support your defense using appropriate and acceptable accounting theory and practice.