Recording Process under GAAP and IFRS

Generally Accepted Accounting Principles, or GAAP, and International Financial Reporting Standards, or IFRS, are frameworks adopted by businesses for financial reporting. 
A key difference between the two frameworks lies in inventory valuation. 
For instance, consider Alpha Corporation purchased merchandise at one hundred dollars per unit. 
Under GAAP, if the market value drops to eighty dollars, the inventory is written down to this lower value. 
This new value becomes the permanent cost basis, meaning that even if the market value later rises to ninety-five dollars, the inventory remains at eighty dollars. 
Under IFRS, the inventory is also written down to eighty dollars if the net realizable value drops to that amount. 
Net realizable value is the expected selling price of inventory minus any costs needed to complete and sell it.
However, unlike GAAP, if the net realizable value later rises to ninety-five dollars, a company can reverse the writedown and increase the inventory value, but can never recognize the inventory above its original cost.
GAAP does not allow the reversal of a write-down once recorded.
Understanding these differences is crucial for businesses, especially those involved in cross-border transactions.