Your client is a private company using ASPE standards. If inventory unit prices were increasing and your client decided to change the inventory valuation method (for reporting purposes only) from a FIFO to a LIFO method, what would you expect to happen to the value of inventory shown on the balance sheet going forward in comparison to its value under FIFO? Why? (3 marks)

Question 22 options:

	Inventory value would decrease
	Inventory value would increase
	FIFO is not allowed under ASPE
	Inventory value would not change