专业英语 会计英语第五单元.pptVIP

* * Last-in, First-out (LIFO) Assumes most recently purchased goods are sold first During a period of rising prices, the use of LIFO method will result in a less amount of net income than the other methods. In a period of deflation or declining prices, the effect is reversed, and the LIFO method yields the highest amount of net income. * * * * Why Not More LIFO? IASB and most countries do not permit. Reasons of elimination: It does not match the usual flow of goods in a business. LIFO results in old values on the balance sheet and can yield very strange COGS numbers when inventory level