A company that prepares its financial statements according to International Financial Reporting Standards 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

LIFO (Last In, First Out) inventory valuation method is not allowed under IFRS. Therefore, the company cannot use the LIFO method for valuing its inventory. However, both average cost and FIFO (First In, First Out) methods are allowed under IFRS. Therefore, choices A, B, and D are all possible inventory valuation methods under IFRS, except for the LIFO method.

A Company That Prepares Its Financial Statements According to International