Question

List of companies using fifo and lifo inventory valuation quora

Answer 1

LIFO is banned because when prices are increasing (which is most of the time), companies can inflate COGS to lower their tax burden. It’s worth noting that LIFO is prohibited under IFRS, but is still permitted in the United States. Whether U.S. GAAP should continue to allow LIFO is a complex discussion that has persisted for many years