However, after backing out the LIFO
credit recorded for the quarter and the prior year's charge, FIFO gross margin fell 103 basis points to 28.
Earnings for the 2013 quarter included $59 million in acquisition-related amortization; $38 million in tax add-back; $7 million in acquisition-related costs; the aforementioned $8 million for the change to AmerisourceBergen; a $5 million LIFO
credit; and a $62 million gain on an increase in the fair market value of warrants.
1363(d) prevents a taxpayer from avoiding the BIG tax related to the LIFO
recapture amount, it does not eliminate the need to consider additional built-in gain related to LIFO
However, the tax savings from using LIFO
come at a cost.
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.
Class discussion should begin with a review of LIFO
and FIFO inventory costing methods and the Altman Z-score model.
The choice between the two is typically based on a comparison of the advantages from using LIFO
with the disadvantages.
To find out if other contact center veterans agreed with the LIFO
routing changeup, I posted the information on our blog site to see if it would solicit any thoughts.
Even if companies were no longer permitted to use LIFO
for financial reporting, they could continue to use it to calculate taxes if either the Treasury or Congress eliminated the LIFO
conformity rule that requires companies to use the same inventory accounting method for tax returns as for their financial reports.
481(a) adjustment will be substantial, because the beginning inventory amount under LIFO
includes purchases from many years earlier.
The study aimed to develop a model that predicts the choice of inventory system through a comparison of long-time FIFO users with long-time LIFO