Under IFRS Companies Can Choose Which Inventory System $\begin{array} { l l l } & \underline{ \text { LIFO }} & \underline{ \text { FIFO }} \\\end{array}$

question 46

Short Answer

Under IFRS companies can choose which inventory system? $\begin{array} { l l l } & \underline{ \text { LIFO }} & \underline{ \text { FIFO }} \\\end{array}$
A) $\begin{array} { l l l } &\text { Yes } & &\text { No } \\\end{array}$
B) $\begin{array} { l l l } &\text { Yes } && \text { Yes } \\\end{array}$
C) $\begin{array} { l l l }& \text { No } && \text { Yes } \\\end{array}$
D) $\begin{array} { l l l } &\text { No } && \text { No }\end{array}$

• A)\(\begin{array} { l l l } &\text { Yes } & &\text { No } \\\end{array}\)
• B)\(\begin{array} { l l l } &\text { Yes } && \text { Yes } \\\end{array}\)
• C)\(\begin{array} { l l l }& \text { No } && \text { Yes } \\\end{array}\)
• D)\(\begin{array} { l l l } &\text { No } && \text { No }
• \end{array}\)

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Definitions:

Benefits

The advantages or positive outcomes that accrue from actions, activities, or projects, often used in evaluating decisions.

Shortsightedness Effect

The tendency of policy makers or individuals to prioritize immediate benefits or gains over long-term interests and consequences, often leading to suboptimal outcomes.

Elected Representatives

are individuals chosen through elections to act and make decisions on behalf of a larger group in a legislative or governance role.

Borrowing

The act of obtaining or taking funds from another party with the promise of returning the principal, along with interest, at a later date.