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Cost formula application for Inventory Valuation, Which is not permissible as per IFRS?

<p>A. FIFO Method</p> <p>B. LIFO Method</p> <p>C. Weighted Average Cost Method</p> <p>D. All are permissible</p>

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Question added by ABDUL MAJEED KOOTHRADAN , Audit Manager , TS Meera Associates Chartered Accountants
Date Posted: 2014/10/06
Ayman Ezzedine
by Ayman Ezzedine , CPA|Financial Consultant/analyst|Senior Audit Manager , Self Employed

LIFO is not applied with the IFRS.

The explanation is clear: in an inflationist contest, the most cheap article will remain in inventories with this method. In another hand, it increase the cost of the solt articles and influence consequently the result.

Thaikkattil Mathew Joshi
by Thaikkattil Mathew Joshi , Group Credit Controller , Gps Group,Dubai.

B.LIFO. Because if we use this method of pricing ,last consignment value has to adopt even for the outdated stock which the organization carrying in their inventory.

That's why IFRS do not recommend LIFO.

Regards,

 

Joshi Mathew

CIA #1036906

 

Muhammad Rizwan
by Muhammad Rizwan , Accountant , Howdy Restaurant

LIFO is not permissable with IFRS, items may be expired if use LIFO method, because new inventory used and old remain there.

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