Stengel plc is preparing its opening IFRS balance sheet on January 1, 2012. Under its previous GAAP,

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Stengel plc is preparing its opening IFRS balance sheet on January 1, 2012. Under its previous GAAP, Stengel used the LIFO inventory method. Under LIFO, its inventory is reported at £250,000; under FIFO, which Stengel will use upon adoption of IFRS, the inventory is valued at £265,000. Explain what Stengel must do.

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Accounting Principles

ISBN: 978-0470534793

10th Edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

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