IAS 2 :Inventory (IFRS vs GAAP) |What is difference IFRS Vs GAAP measuring Inventory

While measuring Inventory using International Financial Reporting Standard (IFRS) and Generally Accepted Accounting Standard Board (GAAP) can be difference in  3 ways :
1.IFRS not permitted LIFO but GAAP permitted

2.IFRS determine write down of inventory using Lower of cost or Net Realizable Value (LCNRV) but GAAP can not use this method when the company are using LIFO or retail method of cost flow assumption

3.when the Net Realizable value increase IFRS allow to reverse the loss of previous year but GAAP not allowed to reverse it even if it is increased.
✍️What is the difference between GAAP & IFRS
✍️what is similarity between IFRS & GAAP
✍️How inventory are measured using IFRS
✍️ how does inventory write down journal entry recorded
Ethiopian government has been accepted International Financial Reporting Standard.
#IFRS #GAAP #Ethiopia #Accounting
አዲሱ የሂሳብ አያያዝ IFRS አሰራር እና አመዘጋገብ

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