Examlex

Solved

The IFRS Disallow the Use of LIFO for External Financial

question 38

Essay

The IFRS disallow the use of LIFO for external financial reporting.Assume a U.S.based company has been using LIFO for financial and tax reporting but now wants to prepare IFRS conforming financial statements to enable its stock to be traded on one of the European stock exchanges.
Required:
a. Describe the adjustments that the US.-based company must make to its accounting records to conform with IFRS.
b. What choices of invent ony accounting metho ds would be available to the U.S. company uncler IFRS?


Definitions:

Clavicle

A lengthy bone that functions as a support link between the scapula and the chest bone.

Epimysium

A layer of connective tissue that surrounds skeletal muscles, providing structural support and protection.

Perimysium

A sheath of connective tissue that groups muscle fibers into bundles or fascicles within a muscle.

Endomysium

A thin layer of connective tissue that surrounds each individual muscle fiber, providing support and maintaining the spatial organization of muscle fibers.

Related Questions