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 the cost flow assumption chosen should most clearly reflect the firm's financial performance and position, which is aligned with reflecting current income accurately.

IFRS Standards Require That a ﬁRm Select the Cost ﬂOw