GAAP allows the use of LIFO to assign costs to inventory but IFRS does not.

Name: GAAP allows the use of LIFO to assign costs to inventory but IFRS does not.
Brand: Quizplus
Rating: 4.8 (39 reviews)

Question

Quizplus · Accepted Answer

This statement is correct. GAAP (Generally Accepted Accounting Principles) allows the use of LIFO (Last In, First Out) method to assign costs to inventory, while IFRS (International Financial Reporting Standards) does not allow the use of LIFO. Instead, IFRS requires the use of the FIFO (First In, First Out) or weighted average cost methods.

GAAP Allows the Use of LIFO to Assign Costs to Inventory