IASB has prohibited the user of Last-in, First out (LIFO) as an acceptable method to determine the cost of inventory.

1. Why was the same prohibited by IASB?

2. Create a hypothetical scenario, whereby you will assume that a business is currently using FIFO method and wants to move towards LIFO. Compare how LIFO will affect the financial statements and elaborate on the fact that whether the move by IASB to prohibit the use of LIFO is right or not?

In order to answer part (2), you may create a hypothetical example and use numerical calculations to justify your work (ANY ANSWER WITHOUT SUCH EXAMPLE IS NOT ACCEPTABLE)