Final answer:
IFRS does not require a specific cost flow method for inventory items with similar uses, while GAAP allows multiple methods.
Step-by-step explanation:
The International Financial Reporting Standards (IFRS) does not specifically require a specific cost flow method for inventory items with similar uses. However, it does recommend using the weighted average cost method as the default method for determining the cost of inventory. Under this method, the cost of inventory is calculated by dividing the total cost of goods available for sale by the total number of units available for sale.
GAAP (Generally Accepted Accounting Principles) in the United States allows multiple cost flow methods, including the first-in, first-out (FIFO), last-in, first-out (LIFO), and weighted average cost methods. However, the specific method used must accurately reflect the flow of the inventory and be consistently applied.