Discuss whether or not you support the GAAP or IFRS approach to inventory. If you could propose a third alternative to reporting inventory, what would it be?© BrainMass Inc. brainmass.com June 23, 2018, 9:25 pm ad1c9bdddf
Discuss whether or not you support the GAAP or IFRS approach to inventory.
Summar of the major differences:
1. IFRS does not permit the LIFO method of costing inventory, unlike US GAAP.
2. IFRS reports inventory at the lower of cost or net realizable value (LCNRV). US GAAP reports inventory at the lower of cost or market (LCM), where market is defined as a replacement cost with a floor (NRV less normal profit margin) and a ceiling (NRV).
3. IFRS allows reversals of prior ...
Your tutorial is 258 words summarizing the major differences and then discussing the questions posed. Three references are provided. I have also attached a slide show by Ernst and Young about GAAP and IFRS inventory which goes into more details.