Home | Business News | Browse by Publication | R | Retail Merchandiser

The LIFO inventory method as it stands today.

Publication: Retail Merchandiser
Publication Date: 01-APR-07 		Format: Online
Delivery: Immediate Online Access

Article Excerpt
Congress recently held hearings to consider the possible repeal of the last-in, first-out (LIFO) inventory method for tax purposes.

PriceWaterhouseCoopers (PwC) believes that the current income tax system and its underlying policies support the continued use of the LIFO method. In particular, the LIFO method should continue to be permitted because it clearly reflects income for tax purposes and is supported by sound tax policy. Moreover, PwC believes that it is inappropriate to repeal the LIFO method due to an expected convergence of U.S. Generally Accepted Accounting Principles (GAAP) and International Accounting Standards (IAS) because the expected scope of such convergence is unclear. Accordingly, the LIFO method should not be repealed under the current income tax system, and should be considered only in the context of broader tax reform.

REFLECTING INCOME CLEARLY

A taxpayer is not permitted to use a method of accounting that does not clearly reflect income.

"According...

View this article FREE - Now for a Limited Time, try Goliath Business News
Free for 3 Days!



More articles from Retail Merchandiser
Demystifying wine: with over 100 franchised stores, WineStyles has tak..., April 01, 2007
King of tires: already the largest independent tire and automotive ser..., April 01, 2007
Taking aim: IRI's annual new products report shows that successful new..., April 01, 2007

Looking for additional articles?
Search our database of over 3 million articles.

Looking for more in-depth information on this industry?
Search our complete database of Industry & Market reports by text, subject, publication name or publication date.

About Goliath
Whether you're looking for sales prospects, competitive information, company analysis or best practices in managing your organization, Goliath can help you meet your business needs.

Our extensive business information databases empower business professionals with both the breadth and depth of credible, authoritative information they need to support their business goals. Whether it be strategic planning, sales prospecting, company research or defining management best practices - Goliath is your leading source for accurate information.