Level I CFA: FRA Inventories-Lecture 2

This is Reading 25 for the 2021 exam.

This CFA exam prep video lecture covers:
LIFO method
Ratios with LIFO and FIFO

[LiliaF-mp]

Thanks for these videos - very useful!

[williampetruccelli]

That balance sheet is not in balance. You need to add "LIFO reserve x Tax Rate" as a Deferred Tax Liability.

[gabs]

Noting that the circumstances for LIFO and FIFO change depending on the prices increasing or decreasing. Does the opposite simply apply for the LIFO reserve if prices are decreasing?

[hishamghandour]

So the last example at the end of this video the answer is A or C couse i see both are true if any one has an ideo please help
Thanks

[Ts]

Why the answer can not be a company (Company B) using FIFO valuation in the last example when talking about an IS item i.e. COGS? Am I missing something ?

[sainichhabra]

for net income can we say NI FIFO =NI LIFO +CHANGE IN LIFO RESERVE -TAXES
WHERE TAXES IS CHANGE IN LIFO RESERVE *TAXES

[gauravkalpasi]

Why is change in LIFO reserve subtracted from LIFO COGS to ascertain FIFO COGS? What is the logic behind this?