Inventory accounting under IFRS differs from GAAP in regard to
A) neither the use of LIFO nor lower-of-cost-or-market.
B) the use of LIFO but not lower-of-cost-or-market.
C) the use of lower-of-cost-or-market but not LIFO.
D) the use of LIFO and lower-of-cost-or-market.

Question

Quizplus · Accepted Answer

Under IFRS, LIFO (Last In, First Out) is not permitted for inventory accounting, whereas it is allowed under US GAAP. Additionally, IFRS uses a lower-of-cost-or-net realizable value approach, whereas GAAP uses a lower-of-cost-or-market approach.

Inventory Accounting Under IFRS Differs from GAAP in Regard to