When is lifo not allowed

Why do you think LIFO is not allowed under IFRS? Should it be disallowed under GAAP as well? Why or why not? Expert Answer. with rampant inflation, and LIFO was permitted by Section 22(d) of the Revenue Act prior to the revision of IAS 2, is no longer allowed (IAS ). Once you've started using LIFO accounting, you're not allowed to go back to another inventory-costing method unless you get approval from the IRS. Last in.