Which of the following statements about the use of the LIFO method in Australia is true?
A) The LIFO method is not allowed to be used for either financial reporting or tax purposes.
B) The LIFO method may be used for both financial reporting and tax purposes.
C) The LIFO method may be used for financial reporting but not for tax purposes.
D) The LIFO method can only be used if approval is received from the Australian Taxation Office.

Question

Quizplus · Accepted Answer

The LIFO (Last In, First Out) method is not permitted for use in financial reporting or for tax purposes in Australia. Australian accounting standards, which align with International Financial Reporting Standards (IFRS), do not allow the use of LIFO for inventory valuation.

Which of the Following Statements About the Use of the LIFO