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Issue 5(1), October 2010 -- Paper Abstracts
Girard  (p. 9-22)
Cooper (p. 23-32)
Kunz-Osborne (p. 33-41)
Coulmas-Law (p.42-46)
Stasio (p. 47-56)
Albert-Valette-Florence (p.57-63)
Zhang-Rauch (p. 64-70)
Alam-Yasin (p. 71-78)
Mattare-Monahan-Shah (p. 79-94)
Nonis-Hudson-Hunt (p. 95-106)



JOURNAL OF APPLIED BUSINESS AND ECONOMICS

Repeal of LIFO: Analysis Based on Industry Data

Author(s): Micah Frankel, Pei-Hui Hsu

Citation: Frankel Micah, Hsu Pei-Hui, (2016)"Repeal of LIFO: Analysis Based on Industry Data," Journal of Applied Business and Economics, Vol. 18, Iss. 6, pp. 11-19

Article Type: Research paper

Publisher: North American Business Press

Abstract:

We discuss the potential consequence of a repeal of the Last-in, First-out (LIFO) inventory method. In 2012, U.S. companies reported a total of 3,207 million LIFO reserves. Assuming a 35% tax rate, this reserve reflects approximately 1,122 million in tax savings. More importantly, there has been a significant increase in LIFO reserves during the past decade. If LIFO is repealed, the substantial tax burden might destroy some firms. Although it is crucial to converge toward International Financial Reporting Standards (IFRS), we suggest that regulators be cautious about the potential repeal of LIFO.