IFRS does not allow the LIFO inventory method because ________.
A) of the increased taxes owed under the LIFO method
B) the majority of companies do not actually sell the oldest items first
C) it is viewed as unrealistic and lacks representational faithfulness of inventory flows
D) the FIFO method more accurately reflects the cost of inventory

Question

Quizplus · Accepted Answer

IFRS prohibits LIFO because it is considered to lack representational faithfulness, as it does not realistically reflect the actual flow of inventory costs.

IFRS Does Not Allow the LIFO Inventory Method Because ________