U.S.GAAP and IFRS requires firms to use specific identification for inventory valuation and cost-of-goods-sold whenever feasible.

Question

Quizplus · Accepted Answer

While specific identification is allowed under both U.S. GAAP and IFRS, it is not required. Instead, the use of FIFO (first-in, first-out), LIFO (last-in, first-out), or weighted average cost methods is more commonly used for inventory valuation and cost-of-goods-sold.

USGAAP and IFRS Requires Firms to Use Specific Identification for Inventory