Repeal LIFO to Conform to IFRS

Repeal LIFO to Conform to IFRS - Obama Tax Reform Proposals...

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Unformatted text preview: Obama Tax Reform Proposals Would Repeal LIFO to Conform to IFRS; and Increase Taxes on Securities and Commodities Dealers James Hamilton, J.D., LL.M., Principal Analyst, CCH Federal Securities Law Reporter ; and CCH Derivatives Regulation Law Reporter . Anticipating SEC adoption of international financial reporting standards (IFRS), the Obama Administration proposed to repeal the last-in, first-out (LIFO) method of accounting for inventories. Since IFRS do not permit the use of the LIFO method, their adoption by the SEC would cause violations of the current LIFO book/tax conformity requirement. Repealing LIFO would remove this possible impediment to the implementation of IFRS in the United States. The Internal Revenue Code permits a taxpayer with inventories to determine the value of its inventory and its cost of goods sold using a number of different methods. The most prevalent method is the first-in, first-out cost of goods sold using a number of different methods....
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This note was uploaded on 06/22/2009 for the course ACCOUNTING 3 taught by Professor Kaas during the Spring '09 term at CUNY Brooklyn.

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