[Verse 1] When you're counting up your stock There's two ways to track your lot IFRS and US GAAP don't always agree On how to value inventory First In First Out that's FIFO's way Oldest costs are first to pay When you sell your goods today Those early prices lead the way [Chorus] LIFO's blocked by IFRS rules Last In First Out's not their tool US GAAP says you can choose But standards matter which you use Weighted average works for both FIFO too will help you grow Know your methods, know them well Inventory's got a story to tell [Verse 2] Last In First Out means LIFO's game Recent costs take all the blame When inflation's on the rise LIFO keeps your taxes low and wise But IFRS said "No way" LIFO's banned, it cannot stay They believe it doesn't show True economic ebb and flow [Chorus] LIFO's blocked by IFRS rules Last In First Out's not their tool US GAAP says you can choose But standards matter which you use Weighted average works for both FIFO too will help you grow Know your methods, know them well Inventory's got a story to tell [Bridge] Weighted average smooths it out Takes the cost without a doubt Divides the total by the count Gets the average amount Lower of cost or market price US GAAP's sound advice IFRS says net realizable Both keep values verifiable [Verse 3] Impact on your balance sheet Makes the numbers incomplete Different methods show different gains Comparability's the strain When you're reading financial news Remember which method they use LIFO, FIFO, or average weight Makes a difference in debate [Chorus] LIFO's blocked by IFRS rules Last In First Out's not their tool US GAAP says you can choose But standards matter which you use Weighted average works for both FIFO too will help you grow Know your methods, know them well Inventory's got a story to tell [Outro] So when you're valuing your stock Remember what's around the block Standards differ east and west Choose the method that fits best
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