Exercise 5-17A GAAP versus IFRS

Generally accepted accounting principles (GAAP) and international financial reporting standards(IFRS) treat the LIFO inventory cost flow method differently.

Required

1. Briefly describe the position GAAP takes with respect to LIFO.
2. Briefly describe the position IFRS tkes with respect to LIFO.
3. Explain the primary force that motivates the different positions.