The convergence issue that will be most difficult to resolve in the area of inventory accounting is:
A) FIFO.
B) LIFO.
C) ownership of goods.
D) costs to include in inventory.

Question

Quizplus · Accepted Answer

LIFO (Last In, First Out) is the most difficult to resolve in the area of inventory accounting convergence because it is not allowed under International Financial Reporting Standards (IFRS), whereas it is permissible under U.S. Generally Accepted Accounting Principles (GAAP). This creates a significant challenge in harmonizing accounting practices globally.

The Convergence Issue That Will Be Most Difficult to Resolve