The Major Difference Between IFRS and GAAP in Accounting for Inventories

question 2

Multiple Choice

The major difference between IFRS and GAAP in accounting for inventories is that

• A) GAAP prohibits the use of specific identification.
• B) IFRS does not require that a physical inventory be taken.
• C) GAAP allows the use of the LIFO cost flow assumption.
• D) GAAP requires that the LIFO cost flow assumption be used.

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Definitions:

High Failure Rate

A situation where a significant proportion of attempts or processes result in unsuccessful outcomes, often used in the context of products, projects, or business ventures.

Fine-tune Organization

The process of making small adjustments to an organization's operations, structure, or strategy to improve efficiency and effectiveness.

Fraud, Deception

Intentional acts of dishonesty carried out to gain unfair or unlawful advantage.

Lack of Commitment

A situation where individuals or groups show a reluctance to dedicate effort or resources towards a particular goal or task.