Temporal method inventory: current or historic under LIFO?

[mellex]

I have in my notes for the Temporal method:
COGS: generally historic in ALL cases unless cost flow info is provided, in which case:

• If FIFO: current inventory is what’s left, so use CURRENT rate; COGS use HISTORIC rate
• If LIFO: old inventory is what’s left, so use HISTORIC rate; COGS use CURRENT rate
• If Weighted Avg: use weighted avg rate
• If bought and sold uniformly: use weighted avg rate

However, in CFAI page 295, Question 23, they use HISTORIC rate to translate the inventory even though the stated cost flow assumption is FIFO.
Any thoughts would be greatly appreciated.

 

[uapak90]

I looked at the question and the answer was directed towards fixed assets - not inventory? They give you the hisotric rates for when specific fixed assets were purchased.

 

[mellex]

Uapak, I see this in the answer:
23 B is correct. Under the temporal method, inventory and fixed assets would be translated using historical rates.

 

[cgy5478]

Regardless LIFO or FIFO, temporal method requires you to translate
PP & E, Depreciation
Inventory, COGS
using historic rate.

 

[mellex]

Thanks all - the below confirms the correct logic:
From CFAI, pg 242:
The historical exchange rates used to translate inventory (and cost of goods sold) under the temporal method will differ depending on the cost flow assumption—first in, first out (FIFO); last in, first out (LIFO); or average cost—used to account for inventory. Ending inventory reported on the balance sheet is translated at the exchange rate that existed when the inventory’s acquisition is assumed to have occurred (ie historical).
If FIFO is used, ending inventory is assumed to be composed of the most recently acquired items and thus inventory will be translated at relatively recent exchange rates.
If LIFO is used, ending inventory is assumed to consist of older items and thus inventory will be translated at older exchange rates.
The weighted-average exchange rate for the year is used when inventory is carried at weighted-average cost.
Similarly, cost of goods sold is translated using the exchange rates that existed when the inventory items assumed to have been sold during the year (using FIFO or LIFO) were acquired. If weighted- average cost is used to account for inventory, cost of goods sold will be translated at the weighted-average exchange rate for the year.