The major IFRS requirements related to accounting for and reporting inventories are
A) the same as GAAP.
B) the same as GAAP with a couple of exceptions.
C) completely different fom GAAP.
D) not comparable to GAAP.

Question

Quizplus · Accepted Answer

The IFRS requirements related to accounting for and reporting inventories are generally the same as GAAP with a few exceptions. One important difference is that IFRS prohibits the use of the Last-In, First-Out (LIFO) method, while GAAP allows it as an option. IFRS also requires the use of the weighted average cost method or the first-in, first-out (FIFO) method. Additionally, IFRS requires the presentation of inventory at the lower of cost or net realizable value, while GAAP requires the presentation at the lower of cost or market.

The Major IFRS Requirements Related to Accounting for and Reporting