Differences in IFRS and GAAP With Inventory

One of the major differences with GAAP and IFRS in regards with inventory is the fact that IFRS does not allow the use of LIFO. GAAP allows the use of FIFO, LIFO, and weighted average. While IFRS only allows the use of FIFO and weighted average. These methods effect net income, which can increase or decrease the taxes a company will have to pay.