Which method cannot be used in Canada to allocate inventory costs between the income statement and the balance sheet?
A)Specific identification.
B)FIFO.
C)Retail inventory method.
D)LIFO.

Question

Quizplus · Accepted Answer

LIFO (last-in, first-out) method is not permitted as per the International Financial Reporting Standards (IFRS) in Canada for inventory valuation and recording. Therefore, it cannot be used to allocate inventory costs between the income statement and balance sheet. B and C are allowed under IFRS, and specific identification is not a method of inventory valuation, but rather a way of tracking individual items.

Which Method Cannot Be Used in Canada to Allocate Inventory