Both IFRS and GAAP allow companies to choose the same methods of assigning costs to inventory: FIFO, LIFO, weighted average cost, and specific identification.

Question

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Under IFRS, companies are not allowed to use the LIFO (Last In, First Out) method for inventory costing, whereas under GAAP (Generally Accepted Accounting Principles), companies can choose between LIFO, FIFO (First In, First Out), weighted average cost, and specific identification methods.

Both IFRS and GAAP Allow Companies to Choose the Same