The only acceptable cost flow assumptions under IFRS are
A) FIFO and LIFO.
B) FIFO and average.
C) LIFO and average.
D) FIFO LIFO and average.

Question

Quizplus · Accepted Answer

Under IFRS, the only acceptable cost flow assumptions are FIFO, weighted average, and specific identification. LIFO is not allowed under IFRS. However, since the question only provides options with one of the allowed cost flow assumptions, the best choice is option B, which includes two of the allowed cost flow assumptions: FIFO and average. The correct answer is B.

The Only Acceptable Cost Flow Assumptions Under IFRS Are