IFRS standards require that a firm select the cost flow assumption that:
A)maximizes income.
B)provides the most conservative inventory cost.
C)most clearly reflects current income.
D)most closely matches the physical flow of inventory.

Question

Quizplus · Accepted Answer

IFRS standards require that a firm select the cost flow assumption that most clearly reflects current income, ensuring that financial statements provide a true and fair view of the company's financial performance.

IFRS Standards Require That a Firm Select the Cost Flow