p. 9. r. S. The typical format for calculating cost of goods sold requires three account values: beginning inventory, sales, and ending inventory. Inventory is valued using the lower-of-cost-or-market valuation method under both US GAAP and IFRS. In a period of rising prices, LIFO often results in higher cost of goods sold than would FIFO. LIFO tends to provide a better matching of revenues with expenses than do other methods. LIFO is not an accepted method to use under IFRS. The depreciation process is designed to keep the net book value of an asset about equal to its fair market value. In determining depreciation expense, four variables need to be determined: cost, salvage value, estimated life, and the chosen depreciation method. t. u. V