For the question below, I realize that if a US company uses LIFO for income tax purposes, LIFO must be used for financials as well. Is it the same way for FIFO when used for income tax purposes as well?
Last part is, is there a list I could utilize of these “specific” rules? Thanks!
Q)
A U.S. company uses the LIFO method to value its inventory for their income tax return. For its financial statements prepared for shareholders, the company may:
A)
The LIFO conformity rule in the U.S. requires firms to use LIFO for their financial statements if they use LIFO for income tax purposes