Question

When determining the international aspects of inventory valuation

A. IFRS prohibits the use of FIFO

B. IFRS permits the use of LIFO

C. It can be difficult to compare a U.S. company against a foreign company if different inventory methods are used.

D. inventory valuation is the only major difference between GAAP and IFRS.

Answer 1

When determining the international aspects of inventory valuation:

C. It can be difficult to compare a U.S. company against a foreign company if different inventory methods are used.

IFRS does not prohibit the use of FIFO, but it does not permit the use of LIFO.

Inventory valuation is not the only major difference between GAAP and IFRS.