Question

Is LIFO method of stock valuation accepted by IFRS? If not what is acceptable in IFRS?

Answer 1

IAS 2 allows the FIFO or weighted average cost formulas. [IAS 2.25] The LIFO formula, which had been allowed prior to the 2003 revision of IAS 2, is no longer allowed.

Answer 2

Hi, IFRS only allows FIFO method, Weighted average cost method and specific unit identification method. LIFO is no longer an acceptable method for inventory valuation.