A company that prepares its financial statements according to International Financial Reporting Standards (IFRS) can use each of the following inventory valuation methods except:
A) Average cost.
B) FIFO.
C) LIFO.
D) All of these methods can be used.

Question

Quizplus · Accepted Answer

While all other inventory valuation methods (average cost and FIFO) can be used by a company that follows IFRS, LIFO is not an allowed method under IFRS. LIFO is primarily used in the United States and is not permitted under IFRS.

A Company That Prepares Its Financial Statements According to International