Options for Journal Entry: Inventory or Asset Revaluation Reserve

Options for (a. b. c.): Increase or decrease

Applying IFRS The French Petroleum Company is a Paris-based oil and gas company that prepares its financial statements using IFRS. During the year, the management of the company undertook a review of the fair value of its oil and gas inventory and found that the inventory had appreciated above its book value of 50 million euros. According to the company's management, the oil and gas inventory was undervalued by 5 million euros. Prepare the journal entry to revalue the company's inventory. How would the revaluation immediately affect the company's (a) current ratio, (b) inventory turnover, and (c) days' sales in inventory? Journal Entry On euros On euros To record re-evaluation of inventory. a. Current ratio b. Inventory turnover c. Days' sales in inventory Check