IFRS Does Not Allow the Use of LIFO Because It

question 37

Multiple Choice

IFRS does not allow the use of LIFO because it

• A) would have to be allowed for tax reporting in each country.
• B) would result in too many overstatements of income.
• C) is inconsistent with any presumed physical flow of inventory.
• D) would have to be the only method permitted.

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Definitions:

Competitive Advantage

The unique attributes or circumstances that allow an organization to outperform its competitors.

Organizational Resources

Assets, capabilities, and inputs that an organization utilizes to operate and achieve its objectives, including human, financial, and physical resources.

Environmental Opportunities

Circumstances in the external environment that a business can exploit to its advantage.

Organizational Weaknesses

Aspects of an organization that reduce its ability to reach its goals, including deficiencies in resources, processes, or capabilities.