IFRS do not allow the use of LIFO because it
A)would have to be allowed for tax reporting in each country
B)would result in too many overstatements of income
C)is clearly inconsistent with any presumed physical flow of inventory
D)would have to be the only method permitted

Question

Quizplus · Accepted Answer

IFRS do not allow the use of LIFO because it is clearly inconsistent with any presumed physical flow of inventory. This is because LIFO assumes that the last items purchased are the first items sold, which is not indicative of actual physical flow.

IFRS Do Not Allow the Use of LIFO Because It