LIFOFIFO
higher COGSlower COGS
lower taxeshigher taxes
lower net incomehigher net income
lower inventory balanceshigher inventory balances
higher cash flows (less tax paid out)lower cash flows (more tax paid out)
lower net and gross marginshigher net and gross margins
lower current ratiohigher current ratio
higher inventory turnoverlower inventory turnover
DA and DE higherDA and DE lower

 

Under IFRS the permissible cost flow methods are:

  • Specific Identification
  • FIFO
  • Weighted average cost