Which of the following inventory costing methods is prohibited under IFRS?
A)FIFO
B)Weighted average
C)LIFO
D)Perpetual

Question

Quizplus · Accepted Answer

Under IFRS, LIFO (Last-in, First-out) method is prohibited for inventory costing. This is because LIFO assumes that the last items purchased are the first ones sold, which does not reflect the true flow of inventory in most cases. Instead, IFRS requires the use of either FIFO (First-in, First-out) or weighted average method for inventory costing. Perpetual inventory system, on the other hand, is a method of tracking inventory levels in real-time and is not a method of inventory costing itself.

Which of the Following Inventory Costing Methods Is Prohibited Under