Account Information

Account Type Statement of Financial Position
Normal Balance Debit

Definition

Goods held for resale

International Accounting Standards

IFRS IAS 2 Inventories

Lower of cost and NRV. FIFO or weighted average cost. LIFO prohibited.

US GAAP ASC 330 Inventory

Lower of cost or NRV (after 2015 update). LIFO still permitted — requires LIFO reserve disclosure.

⚠ Key Difference: IFRS vs GAAP

IFRS prohibits LIFO; GAAP permits it requiring LIFO reserve disclosure