. University Project 1 - Report 7 However, the differences between IAS2 and VAS2 are: VAS2 also has the same method of calculating value of inventories as IAS2 . However, VAS2 has not eliminated. inventory valuation include FIFO, AVCO and standard cost. a) First-in-first-out (FIFO) Inventory is valued at the most recent „cost‟, since the cost of oldest inventory is charged out first, whether. inventory is no longer salable. Possibly due to too much inventory on hand, out of fashion or demand. The true value of the inventory is seldom exactly what is shown on the balance sheet. Often,...