Under IAS 2, What Adjustment Needs to Be Made After

Under IAS 2, what adjustment needs to be made after an inventory write-down if the selling price subsequently increases?

A) No adjustment is necessary. Once inventory is written down, it cannot be increased under IASB standards.
B) It should be sold at the replacement cost.
C) The inventory write-down should be reversed to bring it in line with the new net realizable value.
D) Recovery of inventory loss should be debited to reflect the increase in inventory value.

Correct Answer:

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