Stock valuation under fifo method
The FIFO method inventory valuation is commonly used under both International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP). First In First Out Inventory Method Examples. ABC Corporation uses the FIFO method of inventory valuation for the month of December. Inventory Valuation Methods in Accounting – FIFO LIFO inventory Method Inventory can make up a large amount of the assets on the balance sheet and so knowing how to analyze the inventory, and the method used by management is crucial. A large part of stock valuation comes from being able to understand how inventory is valued and built.