Explain LIFO Reserve and LIFO Liquidation CFA Level 1

  • shamim
  • January 23, 2024
  • 5 min read

In a persistently deflationary environment, it is possible for the LIFO reserve to have a negative balance, which is caused by the LIFO inventory valuation being higher than its FIFO valuation. This information is dependent upon future events, which may be outside of the Company’s control and could have a significant impact on its GAAP […]

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