CERTYNEX IFRS ACADEMY

The Drusax group measures identical spare parts using FIFO in its northern warehouse and weighted average cost in its southern one, 'out of local habit'. There is no difference in nature or use (case data). What is the error?

FIFO should have been applied in both warehouses because it is more prudent.

Similar items are measured using different policies without a justified category.

There is no error: each site may keep its habits if it applies them every year.

Weighted average cost is prohibited for spare parts.