For inventory costing purposes, GAAP and IFRS differ in that GAAP allows the use of FIFO, whereas IFRS prohibits the use of FIFO.

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Quizplus · Accepted Answer

This statement is actually false because the opposite is true. GAAP and IFRS differ in that GAAP allows the use of either FIFO or weighted average cost method for inventory costing, whereas IFRS allows the use of FIFO or weighted average cost method but does not permit the use of LIFO (last-in, first-out).

For Inventory Costing Purposes, GAAP and IFRS Differ in That