Excluding a
LIFO provision that rose 129.7% to $13.8 million, FIFO gross margin declined 96 basis points to 27.63%.
Stripping out
LIFO and all other special items in both periods, adjusted operating profit advanced 17% to $416.6 million.
1.1363-2(e)(1), a taxpayer must adjust the basis of its inventory to reflect the amount of
LIFO recapture included in income.
* Providing this information may violate the
LIFO conformity rule.
The IRS tax conformity rule IRC [section] 472(c) requires that companies using
LIFO for tax purposes have to use
LIFO for income measurement in financial accounting, too.
The criticisms of
LIFO as a financial reporting method are well known; they include the contention that
LIFO creates inefficiencies in business operations and may facilitate earnings management (Edward D Kleinbard, George A.
Implement a
LIFO approach, and the perception is just the opposite: callers know they'll sometimes have to wait, but also know the chance is good that service will be rather quick, if not immediate.
The ACAS guide Age and the Workplace says that "practices such as last in first out (
LIFO) and using length of service in any selection criteria are likely to be age discriminatory".