IFRS - Chapters 8 & 9 Flashcards
1
Q
Does GAAP require the use of specific identification?
A
No
2
Q
Does IFRS permit LIFO?
A
No
3
Q
What are the cost-flow assumptions for IFRS?
A
- Specific identification
- Average cost
- FIFO
4
Q
What is cost (IFRS)?
A
acquisition price
5
Q
What is net realizable value (IFRS)?
A
net amount that a company expects to realize from the sale of inventory
6
Q
Inventories are recorded at their cost. However, if inventory declines in value below its original cost, a company should write down the inventory to what (IFRS)?
A
Net Realizable Value
