IFRS could increase US corporate tax bills

US companies face paying more tax because international accounting standards
rules out a particular form of inventory accounting. reports that around
a third of US companies uses ‘last-in first-out’ inventory accounting which is
not permitted under IFRS. Research from the
Tech Financial Analysis Lab
points to the change creating a boost to
earnings and therefore increases taxes.

Professor Charles Mulford at Gerogia Tech is quoted saying. ‘We think that
the tax effects could reduce the market values of the affected companies.’

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