IFRS Net Impact on Taxable Income, Elimination of 72 year old LIFO Accounting practices?

As if corporate America doesn't have enough economic pressure upon its shoulders these days. Now, the 2011 federal budget proposed by the Obama Administration again includes a provision to repeal LIFO accounting. LIFO allows companies to calculate the cost of goods sold based on the price of the most recently purchased ("last-in") inventory, rather than inventory that was purchased more cheaply in the past and has been sitting on the shelf. That boosts the cost of goods sold, which lowers profits - and, thus, taxable income. Let's face the truth here, inventory isn't flying off the shelves for anyone and what in the world are the lawmakers in Congress thinking?

Full story here as published in CFO magazine.