Just wondering if we can say use LIFO to calculate our capital gains one year, then FIFO the next financial year. Is this something we can do if we feel like changing? Possibly for reasons like: we believe, say, FIFO actually makes more sense than LIFO or the calculations is just easier?
Hi @Kirinin
Yep!
As an investor, you get to decide which assets you're disposing of when you dispose of them. You can use any method you wish, so long as you're individually identifying them. This means the only restriction to you is that you won't be able to use the average cost method (since that isn't individually identifying the asset).
You can choose to use LIFO one year, FIFO the next, or any combination each year you choose. :)
You can read about identifying when shares or units were acquired on our website.
Hi @Kirinin
Yep!
As an investor, you get to decide which assets you're disposing of when you dispose of them. You can use any method you wish, so long as you're individually identifying them. This means the only restriction to you is that you won't be able to use the average cost method (since that isn't individually identifying the asset).
You can choose to use LIFO one year, FIFO the next, or any combination each year you choose. :)
You can read about identifying when shares or units were acquired on our website.
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