Synapse
⌘+K
Synapse
PulseExploreClubsResearchersJournals
Instagram
HomeClubsExplore
March 18, 2026The Accounting Review

A Note on Estimating the Economic Impact of the LIFO Method of Inventory Valuation.

View Full Paper
Ask AI
Bookmark
Share

Authors

SSShyam Sunder

Discussion

Loading...

Member takes

Overview

A model estimates LIFO's economic impact on firms, indicating valuation changes and risks involved.

Key Points

  • This research aims to estimate the economic impact of adopting the LIFO method on a firm's value.
  • Developed a model to estimate economic value changes due to LIFO adoption
  • Utilized three parameters: marginal tax rate, inventory cost, capital cost to inflation ratio
  • Focused on net present value of future cash flows
  • Model indicates LIFO adoption may increase market value of the firm
  • Adoption of LIFO is associated with increased market risk for ownership shares
  • Assumptions include constant inventory physical quantity and known rates of price change

Cite This Study

Shyam Sunder (1976) studied this question.

synapsesocial.com/papers/69ba430d4e9516ffd37a3dcchttps://doi.org/10.2308/tar-4492020
View Full Paper
Ask AI
Bookmark
Share

Also Consider

Synapse has enriched 5 closely related papers on similar clinical questions. Consider them for comparative context:

  1. 1Costs and benefits of the LIFO‐FIFO choice2024 · 2 citations
  2. 2LIFO vs FIFO Under Conditions of "Certainty".1968
  3. 3Comparative Analysis of FIFO and LIFO Methods in Cost Accounting: Implications for Inventory Valuation and Profitability2025
  4. 4THE MANAGERIAL USE OF DATA OBTAINABLE IN CONJUNCTION WITH LIFO.1956
  5. 5The Effects of LIFO Inventory Costing on Resource Allocation: A Comment.1981