Specific identification
A) must be used under IFRS if it would result in the most conservative net income.
B) cannot be used under GAAP.
C) cannot be used under IFRS.
D) must be used under IFRS if the inventory items are not interchangeable.

Question

Quizplus · Accepted Answer

Under IFRS, specific identification must be used if the inventory items are not interchangeable. This means that each item must be separately identified and valued based on its specific cost. However, under GAAP, specific identification is just one of several inventory valuation methods that can be used, and it is generally only used when the inventory items are not interchangeable and have a unique cost.

Specific Identification