Under International Financial Reporting Standards (IFRS) product costs are charged off in the immediate period and period costs may be carried into future periods.

Question

Quizplus · Accepted Answer

Under IFRS, product costs (such as inventory costs) are recognized as assets when incurred and charged off as expenses in the period in which the related revenue is recognized. Period costs (such as selling and administrative expenses) are expensed in the period incurred and cannot be carried into future periods.

Under International Financial Reporting Standards (IFRS) Product Costs Are Charged