38.7k views
4 votes
True or False: LIFO is not allowed under the International Financial Reporting Standards

1 Answer

1 vote

Final answer:

LIFO is allowed under the International Financial Reporting Standards (IFRS).

Step-by-step explanation:

The statement is False: LIFO (Last-In, First-Out) is allowed under the International Financial Reporting Standards (IFRS).

Under IFRS, both LIFO and FIFO (First-In, First-Out) methods are acceptable for valuing inventory. However, LIFO is less commonly used under IFRS compared to FIFO.

For example, if a company uses the LIFO method to value its inventory, it assumes that the most recent purchases are the first to be sold, leaving the older inventory for later sales.

User Pinedax
by
8.0k points