IFRS prohibits use of the LIFO cost-flow assumption.

Question

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IFRS (International Financial Reporting Standards) does not permit the use of LIFO (Last-In, First-Out) cost-flow assumption for inventory costing. The reason for this is that IFRS aims to achieve global financial reporting consistency and comparability, and LIFO is not widely used outside the United States. Instead, entities following IFRS must follow other cost-flow assumptions such as FIFO (First-In, First-Out) or weighted average cost.

IFRS Prohibits Use of the LIFO Cost-Flow Assumption