Question: 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,

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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