The difference between FIFO inventory and LIFO inventory. The figure indicates how much a company's taxable income has been reduced by using the LIFO accounting method rather than the FIFO accounting method. As prices for goods and materials rise, the LIFO reserve will also rise.
Related information about LIFO reserve:
- LIFO Reserve Definition | Investopedia
The LIFO reserve is an account used to bridge the gap between FIFO and LIFO costs when a company is using FIFO but would like to report LIFO in its financial ...
- CFA Level 1 Study Guide - Assets - Converting LIFO to FIFO ...
The LIFO reserve is the difference between what their ending inventory would ... COGS (FIFO) = COGS (LIFO) - (LIFO reserve at the end of the period - LIFO ...
- What is a LIFO Reserve? | AccountingCoach.com Q&A
Let's assume that a company's accounting system uses FIFO (first-in, first-out), but the company wants its financial and income tax reporting to use a LIFO.
- LIFO Reserve Definition - AccountingTools
In the typical inflationary environment, the value of a FIFO inventory is higher than the value of a LIFO inventory, so the calculation of the LIFO reserve is: ...
- Add back LIFO Reserve? : Linda Keith CPA
The accountant is telling me that I need to add the "LIFO Reserve" figure back to ... Can you give me some details on the LIFO reserve and why it is/isn't correct to ...
- Financial Accounting 7A: Inventory- LIFO Reserve, LIFO Liquidation ...
Mar 17, 2012 ... Financial Accounting 7A: Inventory- LIFO Reserve, LIFO Liquidation. kenboydstl. Subscribe Subscribed Unsubscribe. Loading icon Loading.
- What is LIFO reserve? definition and meaning
Definition of LIFO reserve: The difference between FIFO inventory and LIFO inventory. The figure indicates how much a company's taxable income has been ...
- The Buzz on the LIFO — What's The Real Story!
Mar 4, 2010 ... The LIFO reserve represents deferred taxable income, and is effectively an interest-free loan from the government on the tax that would ...