Business Entity Accounting Act Article 43

（Inventories）The cost of inventories may be calculated by using specific identification method, first-in, first-out method or average method.Inventories shall be measured at the lower of cost and net realizable value. If the cost of inventories is higher than net realizable value, inventories shall be written down below cost to net realizable value, and the amount of the write-down shall be recognized as cost of sales in the period the write-down occurs.