Section of Taxation
Committee Comments

Comments Concerning Proposed Regulations
Regarding the LIFO Method of Accounting
[REG-107644-98]

Table of Contents

The following comments are the individual views of the members of the Section of Taxation who prepared them and do not represent the position of the American Bar Association or of the Section of Taxation.

The comments were prepared by members of the Tax Accounting Committee of the Section of Taxation. Principal responsibility was exercised by Barbara J. Young. Substantive comments were made by Frank Devlin, Scott Vance, and Dwight Mersereau. The Comments were reviewed by Robert E. Liles, II, of the Section’s Committee on Government Submissions and by Stanley L. Blend, Council Director for the Tax Accounting Committee.

Although the members of the Section of Taxation who participated in preparing these Comments may have clients who would be affected by the federal tax principles addressed by these Comments or have advised clients on the application of such principles, no such member (or the firm or organization to which such member belongs) is currently being engaged by a client to make a governmental submission with respect to, or otherwise to influence the development or outcome of, the specific subject matter of these Comments.

Contact:

Barbara J. Young
(703) 747-1153
Barbara.Young@ey.com

Date: October 27, 2000

Table of Contents

Executive Summary
I. Introduction
II. Recommendations
A. IPIC as an Overall Method of Accounting for LIFO Inventories
B. Elimination of Requirement to Use 10 Percent Categories and BLS Weights
C. Selecting Indexes as of an Appropriate Month
D. Selection From "CPI Detailed Report" or "PPI Detailed Report"
E. Indexes for Work-In-Process
F. Inventories Received in a Nonrecognition Transaction
G. New Base Year For IPIC Method Changes
H. The Use of Dual Indexes

Disclaimer | Contents | Summary | I | II.A | II.B | II.C | II.D | II.E | II.F | II.G | II.H