Asked by Gruia Ghiroaga on Jun 18, 2024
Verified
LIFO can be used
A) under neither GAAP nor IFRS.
B) under IFRS but not GAAP.
C) under GAAP but not IFRS.
D) under both GAAP and IFRS.
GAAP
Generally Accepted Accounting Principles, a set of accounting standards and procedures used in the United States to ensure financial statements are consistent and transparent.
IFRS
International Financial Reporting Standards - a set of accounting guidelines that provide the basis for cross-border financial reporting.
- Master the repercussions associated with the application of LIFO and FIFO cost flow assumptions in the realm of GAAP and IFRS compliance.
Verified Answer
BR
Brian RatemoJun 22, 2024
Final Answer :
C
Explanation :
LIFO is not permitted under IFRS, but it is allowed under GAAP for certain industries such as petroleum and coal.
Learning Objectives
- Master the repercussions associated with the application of LIFO and FIFO cost flow assumptions in the realm of GAAP and IFRS compliance.
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