why-does-ifrs-prohibit-the-use-of-the-lifo-inventory-method

Question

Why does IFRS prohibit the use of the LIFO inventory method?

Accepted Answer

LIFO does not reflect current market values accurately.

Answer

LIFO results in higher tax liabilities.

Answer

LIFO is too complex to implement.

Answer

LIFO is not recognized by any accounting standards.