IFRS Notes

LIFO is not allowed by IFRS

Inventories are measured at the lower of the following:
(1) cost
(2) net realisable value

Cost includes all costs incurred to bring inventories to
current location and condition.

Net realisable value (NRV) = (1) - (2)
(1) estimated selling price
(2) estimated costs of completion and sale

Measurement of cost
(1) standard cost method is allowed
(2) retail method is allowed

Cost formulas
(1) first-in, first-out (FIFO) method is allowed
(2) weighted average method is allowed
(3) last-in, first-out (LIFO) method is NOT allowed, IAS2-bc9

U.S. GAAP
ARB No. 43, Chapter 4, Para. 6
asc 330-10-30-9
Following cost flow assumptions are allowed:
(1) first-in, first-out (FIFO)
(2) average method
(3) last-in, first-out (LIFO)