Annotated Bibliography Concerning IFRS Adoption and LIFO
Student Name Redacted
University of Mississippi
Annotated Bibliography Concerning IFRS Adoption and LIFO
Currently, there are many popular research topics in the accounting discipline. One of the most popular is the potential adoption of International Financial Reporting Standards (IFRS). Since their formal commitment, known as the Norwalk Agreement, the FASB and the IASB have worked diligently to converge their financial reporting standards; however, several hurdles still exist. One of those hurdles is the last in first out (LIFO) inventory valuation method. The IASB's reporting standards, IFRS, prohibit the use of LIFO while the FASB's reporting standards, GAAP, allow the use of LIFO. Upon reviewing my sources, I would like to find out who stands to profit if LIFO is added to IFRS and who stands to profit if LIFO is eliminated from GAAP. I believe this information would be useful for determining whether or not LIFO should be eliminated.
This annotated bibliography cites and summarizes select sources from academic journals in the accounting field. I have also chosen pieces of information from each source that I believe would be particularly useful for researching LIFO adoption or elimination. All articles were located using the University of Mississippi EBSCOhost database. I limited my search to articles published within the past five years to ensure that all sources contained relevant information. All articles pertain to LIFO in some way.

Bloom, R., & Cenker, W. J. (2009). The death of LIFO? Journal of Accountancy, 207(1), 44-49. Retrieved from http://journalofaccountancy.com
In the article "The Death of LIFO?" (2009), Bloom and Cenker assert that switching from LIFO to another inventory approach would require "managing the accounting tax differences" (p. 44). The authors support their assertionaifferencesdifferences and Simi//e, revenue recognition and consolidated financial statements. by discussing the reporting issues, tax effects, income effects, and timing issues associated with changing inventory methods. The authors wrote this article in order to help readers understand how to handle changing inventory methods. By providing details about tax laws, the authors effectively directed this article toward members of the accounting discipline who are educated in tax accounting.
This article would be useful for showing how a change in inventory methods is taxed, and it explains why companies use LIFO. Bloom and Cenker (2009) state: "Companies adopt LIFO primarily to lower their income tax liability and to postpone paying taxes, but it also reduces income for financial reporting purposes" (p. 48).

Fosbre, A. B., Fosbre, P. B., & Kraft, E. M. (2010). A roadblock to US adoption of IFRS is LIFO inventory valuation. Global Journal of Business Research, 4(4), 41-49. Retrieved from http://www.theibfr.com/gjbr.htm
In the article "A Roadblock to US Adoption of IFRS is LIFO Inventory Valuation" (2010), A. Fosbre, P. Fosbre, and Kraft assert that the LIFO inventory method is the "roadblock" that exists between U.S. GAAP and IFRS (p. 41). The authors support their assertionaifferencesdifferences and Simi//e, revenue recognition and consolidated financial statements. by citing other literature from the field and by demonstrating how LIFO decreases taxes. The authors wrote this article in order to convey their recommendations concerning LIFO and IFRS adoption. The authors effectively directed this article toward any member of the accounting field.
This article would be useful for explaining the higher income tax associated with LIFO elimination. I also found one other interesting topic that could potentially be something worth researching: "In the 2007 tax reform proposal H.R.3970, the House Ways and Means Committee estimated that the provision to repeal LIFO for income tax reporting would raise approximately $106 Billion in ten years" (A. Fosbre et al., 2010, p. 47).

Harris, P. (2011). Should last in first out inventory valuation methods be eliminated? Global Journal of Business Research, 5(4), 53-67. Retrieved from http://www.theibfr.com/gjbr.htm
In the article "Should Last in First out Inventory Valuation Methods be Eliminated?" (2011), Harris asserts that:
The elimination of LIFO which seems imminent may result in a win-win situation for all; as the negative and added costs of LIFO may well exceed its tax advantage, resulting in greater cash flow for the firm, while allowing for the standardization of worldwide accounting standards and raising additional tax revenue for the US government. (p. 53)
Harris supports his assertionaifferencesdifferences and