cunuiuis. htus 1. Under IFRS, an entity should initially recognize inventory when A. it has control of the inventory. B. it has the ability to direct the use of and obtain substantially all the benefits from the inventory. C. it has the ability to prevent other companies from directing the use of or receiving benefits from the inventory. D, all of the above choices are correct. 2. With respect to accounting for inventories, which of the following is a difference that exists for IFRS, as opposed to U.S. GAAP? A. The use of the LIFO method of inventories is prohibited. B. The FIFO method of inventories is prohibited. C. The specific identification method of inventories is only allowed when goods are interchangeable. D. The weighted average method of inventories is prohibited. 3. Under IFRS, which of the following would be included in the cost of inventories? A. Product specific designer costs B. Abnormal waste materials C. Selling costs D. All of these would be included in the cost of inventories. Which of the following statements is true regarding IFRS and inventories? A. In order to determine market valuation of inventories, IFRS uses a ceiling and a floor. B. IFRS permits the option of valuing inventory at fair value. C. With respect to inventories, IFRS defines market as net realizable value. D. IFRS allows inventory to be written up above its cost