A company has a profit before tax of 4m using FIFO to value inventory. Its opening and closing inventory valuations are as follows using alternative valuation methods:

	Alternative inventory valuation methods
	LIFO 000	FIFO 000	AVCO ,000
Opening inventory	3,460	8,500	7,440
Closing inventory	3,700	9,250	8,575

Required

1. Discuss whether the IASB should revise IAS 2. Your answer should be illustrated by supporting calculations. For instance, if you assume that only inventory is varying, you will be able to calculate a COGS difference between the methods (since Purchases will be constant). Then you can start evaluating implications of each choice on the "usefulness" of the information