Proponents of LIFO accounting
are concerned with the tax burden faced by firms switching from LIFO.
If the mapmakers can't draw safe districts for each of the 101 Republicans elected last November, they'll be pushed into a kind of political LIFO accounting
- last in, first out.
"There are a lot of adverse consequences if this is done too quickly." He points to a substitution of FIFO for LIFO accounting
as an example.
Aside from allowing LIFO accounting
, it was noted that the disclosure of management compensation would need to be eliminated and the reversal of impairment charges could cause concern on the part of users.
This article highlights the impact of LIFO accounting
, widely used in the U.S.
"Credit officers will also need to be on the lookout for things like the elimination of 'LIFO' and inventory write-downs that may be reversed." LIFO accounting
, which stands for "last in, first out," refers to a strategy where a company records the last units purchased or produced as the first units sold.
Because inventories are so important, there are special requirements for taxpayers changing to the LIFO accounting
The objective of the LIFO accounting
method is to permit taxpayers to properly match their current sales revenues with the current replacement costs and thereby compute--and pay taxes on--a meaningful gross profit amount.
to the item/ cost method of LIFO accounting
from the retail LIFO method.
However, after excluding both fuel sales and the effect of the LIFO accounting
change described above, gross margin was essentially flat year-to-year.