Answer-first summary for fast verification
Answer: 2,000.
**Explanation:** Under IFRS, inventory must be measured at the lower of cost or net realizable value (NRV). At the end of Year 1, the inventory was written down from 2,000 to 1,700 due to NRV being lower. In Year 2, the NRV increased to 2,500. However, reversals of write-downs are limited to the original write-down amount (300 in this case). Therefore, the inventory value is adjusted back to 2,000 (1,700 + 300) at the end of Year 2. This aligns with the requirement to reassess NRV each period and allows for reversals up to the original write-down, but not beyond. US GAAP does not permit such reversals, which would result in the inventory remaining at 1,700.
Author: LeetQuiz Editorial Team
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An analyst gathers the following data (in € millions) regarding a manufacturing company's inventory:
A
1,700.
B
2,000.
C
2,500.
