Chapter 6, Problem 6.1IFRS

To determine

Inventory Accounting Systems: Merchandise operation is an operation undertaken by the company to conclude sales of goods to the customer. The business must take into account its total inventory value. It needs to identify the worth of merchandise inventory. There are three prime methods of inventory valuation, they are:

1. 1. First-in-first out method (FIFO)
2. 2. Last-in-last out method (LIFO)
3. 3. Average cost method

To Describe: The similarities and differences between GAAP (Generally Accepted Accounting Principles) and IFRS (International Financial Reporting Standard) with respect to the accounting for inventories.