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Essay / International Financial Reporting Standards - 1394
When we look at IFRS, we see that a fair market valuation is available for a wider selection of assets than under US GAAP. IFRS 3 activity: COMPANY: FIFO less LIFO IFRS NET PROFIT CURRENT ASSETS (IFRS NET PROFIT COLUMN 2) REPORTED NET PROFIT Exxon $21,348 $30,143 36% 99% Ford $865 $4,686 3% 100% Kroger $827 1,173 $ 11% 105% C) It can be observed that Exxon has the largest gap between FIFO and LIFO inventory as a percentage of current assets. We can observe that this is happening because Exxon has massive inventories of oil and various petroleum products. Additionally, we see a large difference between FIFO and LIFO valuations due to the large differences between current oil prices and the prices observed throughout the process..