LIFO Conundrum

Tags:

• Accounting
• Approaches
• Changes
• Companies
• Consumption Overpopulation and Its Effects on The
• Decision
• Effect
• Effects
• Federal
• Financial resources
• Force
• Government
• IT
• Making
• Need
• Practices
• Resources
• Since
• Social Media Has a Negative Effect on
• Standards
• State
• Taxes
• The
• US

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275

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LIFO Conundrum. Discontinuing LIFO use as called for by changes in accounting standards will have some negative effects. Firstly, it will force US companies to pay higher taxes at all government levels (federal, state and local) thereby increasing their economic burden and causing a drain on their financial resources with some of them finding it difficult to continue surviving. Secondly, it has a negative effect on investments as previous choices become irrational since investors must shift their accounting practices causing a change in their decision-making approaches. The implication is that there is a need for the identified concerns to be addressed and allayed before discontinuing LIFO use to preempt the negative effects on the financial