The U.S. IRS has released an international practice unit, Introduction to Dollar Value LIFO. The general overview of the practice unit is provided as follows:
Any taxpayer may elect to determine the cost of Last In-First Out (LIFO) inventories under the "dollar-value" LIFO method, provided the taxpayer uses the method consistently and it clearly reflects income in accordance with the rules of Treas. Reg. 1.472–8 Dollar-value method of pricing LIFO inventories.
The dollar-value method of v…