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.

Give a brief analysis of the accounting impact to financial statements as a result of the varying guidance regarding Inventory measurement & reversal of inventory write-down.