Discuss Why LIFO Cost-Flow Method Is Not Permitted Under IAS

question 21

Essay

Discuss why LIFO cost-flow method is not permitted under IAS 2 when it is supported in the US in periods of rising prices.

Understand the role of cost-benefit analysis in utilitarianism and ethical decision-making.

Grasp the concept and key factors of corporate social responsibility (CSR) in business practices.

Recognize the significance of corporate actions on stakeholders and the environment, emphasizing corporate social responsibility.

Evaluate business decisions through the lens of corporate social responsibility considering all stakeholders.

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Definitions:

Quick Ratio

An indicator of a firm's capacity to fulfill its immediate liabilities using its most easily convertible assets.

Debt-Equity Ratio

A measure of a company's financial leverage, calculated by dividing its total liabilities by its shareholder equity, indicating the extent to which it is financing its operations through debt.

Current Ratio

A liquidity ratio that measures a company's ability to cover its short-term liabilities with its short-term assets.

Interest Expense

The cost incurred by an entity for borrowed funds over a period.