Title

IFRS and US GAAP convergence progressing: As taxpayers voluntarily stop using LIFO

Document Type

Article

Publication Date

2013

Originally Published In

International Business & Economics Research Journal

Volume Number

12

Issue Number

4

Page Numbers

451-456

Abstract

This paper presents the potential benefits of the last in, first out (LIFO) inventory valuation method being eliminated as a requirement in financial statements prepared under United States Generally Accepted Accounting Principles when also used for United Stated federal income tax reporting. Research results show that corporations have been voluntarily switching from LIFO to another method since inflation declined well below double digits. Of the corporations still using LIFO, the potential billions of federal tax revenue is presented that might help keep the United States federal budget from going over the fiscal cliff.