Glossary
With over 200 terms in both English and French, our M&A Dictionary is designed to help you better understand the key words and concepts related to the sale oe purchase of a business in Canada.
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Last In First Out (LIFO)
« Back to Glossary IndexCategory: Accounting and Finance
LIFO stands for “Last-In, First-Out,” and it is a method of inventory valuation used in accounting. Under the LIFO accounting method, the cost of the latest or most recently acquired inventory items is considered to be the first to be expensed when calculating the cost of goods sold (COGS) on the income statement. In other words, the assumption is that the last items added to the inventory are the first ones sold. Note that in Canada The Canada Revenue Agency (CRA) and International Financial Reporting Standards (IFRS) don’t allow the use of LIFO for inventory valuation in terms of financial reporting or tax purposes.
« Back to Glossary IndexAcronym:
LIFO
French Translation: