FIFO is the acronym for First-In, First-Out. It is a cost flow assumption usually associated with the valuation of inventory and the cost of goods sold. Under FIFO, the oldest costs will be the first costs to be removed from the balance sheet account Inventory and will be the first costs to be included in the cost of goods … Read the rest
FIRST IN FIRST OUT
IAS 2 (inventories) set out the accounting treatment for inventories, including the determination of cost, the subsequent recognition of the expense and any write-down to Net Realizable Value (NRV)
So what is the inventory?
Inventory according to IAS 2 are assets that are :
- Held for sale in the ordinary course of business
- are in the process of production for