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7 Cards in this Set
- Front
- Back
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FIFO inventory (LIFO to FIFO, B/S and I/S) |
FIFO inventory = LIFO inventory + LIFO reserve |
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FIFO deferred tax (LIFO to FIFO, B/S) |
FIFO deferred tax = LIFO deferred tax + T x (LIFO reserve) |
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FIFO retained earnings (LIFO to FIFO, B/S) |
FIFO retained earnings = LIFO retained earnings + (1 - T)(LIFO reserve) |
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FIFO COGS (LIFO to FIFO, I/S) |
FIFO COGS = LIFO COGS - increase in LIFO reserve |
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FIFO profit (LIFO to FIFO, I/S) |
FIFO profit = LIFO profit + (1 - T)(increase in LIFO reserve) |
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Effect of LIFO liquidation in falling prices |
If prices are falling, does not provide a boost to earnings |
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Joint venture accounting treatment (GAAP vs IFRS) |
Use equity method for both; in rare cases, use proportionate consolidation |
