Schweser says once it is written down, it can only be revalued up by the amount of the initial write down and a gain is recognized in the income statement…I seem to remember write ups that are for more than the initial write down being recognized In equity, is that true? Or can it only be written up by an amount equal to the previous write down
Why’s this in the Level III forum?
My bad that was accidental, can you still give the answer haha
Doing an upward revaluation in excess of a previous write-down with impact on equity only applies to long lived assets measured under the revaluation model (IFRS) and to some AFS financial assets. You cannot apply this treatment to inventory.
regards