Avoiding Missteps in the LIFO Conformity Rule  

Oleh:

Adams, Mollie T. ; Troutman, Coleen S.

Jenis: Article from Bulletin/Magazine
Dalam koleksi: Journal of Accountancy vol. 214 no. 2 (Aug. 2012), page 60-64.
Topik: LIFO; Multinational Corporations; Financial Reporting; Violations; Memoranda

Ketersediaan

Perpustakaan Pusat (Semanggi) Nomor Panggil: JJ85.33 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada

Lihat Detail Induk

Isi artikel

During inflationary times, companies can reduce their taxable income by using the last-in, first-out (LIFO) cost flow assumption for inventories. The increase in multinational companies and the disparity in financial reporting standards among countries add to the complexity of satisfying the LIFO conformity rule. While LIFO is allowed under US GAAP, it is not allowed under IFRS. Violating the LIFO conformity rule would certainly be a concern if the US adopts IFRS for financial reporting rules; however, even if the US does not adopt IFRS, these standards are increasingly being used globally. In a recent legal advice memorandum (FAA 20114702F), the IRS determined that a US taxpayer had violated the LIFO conformity rule by providing a bank with financial statements prepared under both US GAAP and IFRS. A solid understanding of what is and is not allowed under the conformity rule can help US, taxpayers avoid the negative consequences that occur when the conformity rule is violated.

Opini Anda

Klik untuk menuliskan opini Anda tentang koleksi ini!

Kembali