Asked by Ashley Dias-Stiefel on Jun 30, 2024
Verified
Prohibited under International Financial Reporting Standards
(IFRS)
A) FIFO
B) LIFO
C) Weighted average
LIFO
"Last In, First Out," an inventory valuation method where the last items to be added to inventory are the first ones used or sold.
FIFO
An inventory valuation method where the first items purchased or produced are the first ones sold, affecting the costs of goods sold and ending inventory.
- Understand the prohibitions and limitations of cost flow assumptions under International Financial Reporting Standards (IFRS).
Verified Answer
ZK
Zybrea KnightJul 03, 2024
Final Answer :
B
Explanation :
LIFO is prohibited under IFRS, so choices A and C are not applicable.
Learning Objectives
- Understand the prohibitions and limitations of cost flow assumptions under International Financial Reporting Standards (IFRS).
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