Companies using International Financial Reporting Standards (IFRS) use a perpetual inventory system, while companies using U.S. GAAP use a periodic inventory system.

Question

Quizplus · Accepted Answer

Companies using both IFRS and U.S. GAAP can use either perpetual or periodic inventory systems depending on their preference and business needs. The choice of inventory system is not determined by the accounting standards used.

Companies Using International Financial Reporting Standards (IFRS) Use a Perpetual