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Question 5 (5 points) Shelby Company has two wholly-owned subsidiaries: Alpha Company, which operates in the US and prepares its financial statements according to US
Question 5 (5 points) Shelby Company has two wholly-owned subsidiaries: Alpha Company, which operates in the US and prepares its financial statements according to US GAAP; and, Beta Company, which operates in France and prepares its financial statements according to IFRS. Currently, both subsidiaries use FIFO as their inventory cost flow assumption. The new CEO of Shelby wants to use LIFO at Alpha for tax reporting. but still use FIFO when preparing its financial statements. Further, the CEO wants to use LIFO in preparation of Beta's financial statements. Are these changes acceptable? Why or why not
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