Can someone throw some light on LIFO liquidation? Is it like selling away the accumulated inventory under LIFO?
Its when you sell more units than you purchase during the year. It was in Level I last year but I don’t think its there this year.
LIFO Reserve? Last in First Out: Commonly used in industries where it’s physical impossible to take the first inventory - like a pile of logs or mound of gravel. Will show a more accurate COGs than FIFO, but a poorer representation of Inventory on the financial statements. This is why the LIFO Reserve exists to reconcile to FIFO for B/S purposes. I really didn’t understand your question. Accumulated Inventory? LIFO Liquidation? Anyway I hope this helps if not and you can clarify the question I will try to give a better answer.
http://www.investopedia.com/terms/l/lifoliquidation.asp Anyway, it’s been moved to lvl 2 as of this year, along with Asset Retirement Obligation from Long Lived Assets reading so 2 less things, at least for now 