My biggest concern is the proposal to eliminate the LIFO method for inventory accounting.
FORBES: CPAs Face Challenge In Early Stage Of Zombie Apocalypse
Mr. Van Hollen also draws a bead on the last-in, first-out accounting method known as Lifo.
WSJ: Merrill Matthews: About Those Tax Breaks for Big Oil . . .
Some foreign forex trading platforms offer 200:1 leverage and spread betting with no requirement for LIFO accounting.
On one level, one could read the Helman piece as just another complaint about proposed repeal of LIFO.
That could cause significant collateral damage to many auto dealerships that use LIFO.
Without going into all the accounting intricacies, LIFO understates inventory value, overstates the cost of sales, and therefore lowers reported earnings.
Trade on CFTC-sanctioned foreign OTC platforms respecting CFTC rules on LIFO and perhaps 10:1 leverage or take their chances in offshore tax havens.
In terms of accounting policies, firms using the last-in, first-out (LIFO) inventory cost valuation are more closely matching costs and prices in an inflationary environment.
The big tax break that President Obama wants to repeal is LIFO, which allows companies minimize tax by saying they sold new more expensive oil first.
The LIFO method is one of the few things that keeps companies, which would like to run on zero working capital, from totally moving to just in time inventories.
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Christopher Helman of Forbes argues that U.S. major oil companies are heavily taxed and should not have their U.S. corporate income taxes raised by repeal of LIFO and oil-specific tax breaks.
Repeal the Last-In, First-Out (LIFO) method of inventory.
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Romanticizing the young, energetic, passionate (read: cheap) teacher, he has made eliminating seniority preferences in layoffs (aka, last in, first out or LIFO) his pet cause (it has been stymied for the time being by the state legislature).
Secondly, on -- forgive me for doing the Bloomberg thing -- LIFO and FIFO -- this is about regularizing a situation so that, for example, oil and gas companies who deal in commodities that fluctuate in price.
WSJ: Merrill Matthews: About Those Tax Breaks for Big Oil . . .
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