The specific identification method
A)cannot be used under GAAP.
B)cannot be used under IFRS.
C)must be used under IFRS if the inventory items can be specifically identified.
D)must be used under IFRS if it would result in the lowest net income.

Question

Quizplus · Accepted Answer

The specific identification method can be used under both GAAP and IFRS. However, under IFRS, this method must be used if inventory items can be specifically identified. This means that if an entity has unique or easily distinguishable items in inventory, they must use the specific identification method instead of other methods like FIFO or LIFO.

The Specific Identification Method