onary times LIFO assigns to inventory the costs of the oldest items acquired by the company, thus causing balance sheet values to become outdated as the company grows. Approximately 30% of U.S. companies currently utilize LIFO. Think about what the implication would be for these companies if the LIFO cost flow assumption were no longer available as a reporting alternative under U.S. GAAP. Do you think U.S. GAAP should follow IFRS and disallow LIFO? Why or why not? You may search additional sites to help form an opinion. One site that may be of interest is savelifo.org. Please post your own opinion and reply to the threads of at least two other students in the class. Be sure to include your name in the thread you begin. Your initial posts should be made by the end of the day on Tuesday in order to give the rest of the class a chance to respond to your thread. You s
Currently, International Financial Reporting Standards (IFRS) do not permit the LIFO inventory cost flow assumption. The primary reason for the disallowance of LIFO appears to be that international standards have a strong balance sheet measurement focus and efforts have been made to eliminate accounting methods that do not support this approach. During inflationary times LIFO assigns to inventory the costs of the oldest items acquired by the company, thus causing balance sheet values to become outdated as the company grows.
Approximately 30% of U.S. companies currently utilize LIFO. Think about what the implication would be for these companies if the LIFO cost flow assumption were no longer available as a reporting alternative under U.S. GAAP. Do you think U.S. GAAP should follow IFRS and disallow LIFO? Why or why not? You may search additional sites to help form an opinion. One site that may be of interest is savelifo.org. Please post your own opinion and reply to the threads of at least two other students in the class. Be sure to include your name in the thread you begin. Your initial posts should be made by the end of the day on Tuesday in order to give the rest of the class a chance to respond to your thread. You should plan to post more than one time during the week and you will be graded on the quality of your posts in addition to the quantity.
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