The Positive Future outlook of the Last in first out Inventory Methods

The Last in First out Method (LIFO) is presently under severe scrutiny from the financial community, which may soon culminate in its repeal as an acceptable accounting method. There are pressures from the International Financial Accounting Standards Board to standardize accounting standards worldwide. In addition, there is political pressure imposed by US Congress to raise additional revenues.Both groups strongly oppose LIFO, raising the possibility of its complete elimination as an acceptable accounting method. However, adverse economic and political events in 2011 and again in 2012 have greatly renewed the lifeline of LIFO indefinitely. In the unlikely case of its ultimate repeal, the author presents some tax opportunities available in this transition period.