Inventory Valuation Method


Please i would prefer to have my inventory valued using LILO as against the average cost method.

I have books which i purchase at intervals. However, the Purchase price seem to change regularly. I would prefer that the cost of sales is recognized using the current purchase price.

Please, how do i go about this??

Thank you.

I doubt that this is ever be implemented especially since similar request for FIFO (which is more widely used than LIFO) have been rejected.

But just out of curiosity, what makes LIFO your preferred method of choice? I hear it’s illegal in many jurisdictions.

This would neither be FIFO nor LIFO and would distort the cost of sales beyond recognition.

That almost certainly would be illegal as you basically would under-report your profit. You have to record any purchase at the time and cost of that purchase and similar for sales.