Inventory Accounting part 8

Kế toán hàng tồn kho chủ yếu là liên quan đến việc chuẩn bị hồ sơ kế toán thuộc các hướng dẫn về các nguyên tắc kế toán chấp nhận chung (GAAP). Tuy nhiên, Sở Thuế Vụ (IRS) có thiết lập riêng của mình các quy tắc liên quan đến hàng tồn kho, không phải lúc nào cũng phù hợp với GAAP.
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Inventory Accounting part 8 13 IRS Inventory Rules 13-1 IntroductionThe inventory accountant is primarily concerned with preparing accounting recordsthat fall under the guidelines of Generally Accepted Accounting Principles (GAAP).However, the Internal Revenue Service (IRS) has its own set of rules related toinventory, which do not always match GAAP. This chapter contains the text of theIRS’s inventory rules, along with commentary from the author (shown next tothe “Commentary” headers). The text of the IRS rules has been truncated by theauthor near the end of some sections where the content does not relate to inventory.In order to locate the original IRS text, please refer to the following headings withinthe Internal Revenue Code: Title 26—Internal Revenue Code Subtitle A—Income Taxes Chapter 1—Normal Taxes and Surtaxes Subchapter E—Accounting Periods and Methods of Accounting Part II—Methods of Accounting Subpart D—Inventories Section 471—General Rule for Inventories Section 472—Last-in, First-Out Inventories Section 473—Qualified Liquidations of LIFO Inventories Section 474—Simplified Dollar-Value LIFO Method for Certain Small Businesses 13-2 Section 471—General Rule for InventoriesCommentary: This section is an authorization for the IRS to develop its own in-ventory rules in order to determine a taxpayer’s taxable income. Whenever in the opinion of the Secretary the use of inventories is necessary in order clearly to determine the income of any taxpayer, 163164 / Inventory Accounting inventories shall be taken by such taxpayer on such basis as the Sec- retary may prescribe as conforming as nearly as may be to the best ac- counting practice in the trade or business and as most clearly reflecting the income. 13-3 Section 472—Last-In, First-Out InventoriesCommentary: Section 472 (a) is a general statement that anyone using the LIFOmethod shall follow IRS rules in doing so.IRS Text:(a) Authorization A taxpayer may use the method provided in subsection (b) in inventorying goods specified in an application, to use such method filed at such time and in such manner as the Secretary may prescribe. The change to, and the use of, such method shall be in accordance with such regulations as the Secretary may prescribe as necessary in order that the use of such method may clearly reflect income. Commentary: Section 472 (b) describes a modified form of LIFO inventory, whereby one layer includes inventory existing before the taxable year and one subsequent layer includes inventory acquired during the taxable year.(b) Method applicable In inventorying goods specified in the application described in subsection (a), the taxpayer shall: (1) Treat those remaining on hand at the close of the taxable year as being: First, those included in the opening inventory of the taxable year (in the order of acquisition) to the extent thereof; and second, those acquired in the taxable year; (2) Inventory them at cost; and (3) Treat those included in the opening inventory of the taxable year in which such method is first used as having been acquired at the same time and determine their cost by the average cost method. Commentary: Section 472 (c) states that taxpayers can only use LIFO for tax reporting purposes if the company already uses LIFO for its regular financial reporting.(c) Condition Subsection (a) shall apply only if the taxpayer establishes to the satisfaction of the Secretary that the taxpayer has used no procedure other than that spec- ified in paragraphs (1) and (3) of subsection (b) in inventorying such goods to ascertain the income, profit, or loss of the first taxable year for which the method described in subsection (b) is to be used, for the purpose of a report or statement covering such taxable year – IRS Inventory Rules / 165 (1) to shareholders, partners, or other proprietors, or to beneficiaries, or (2) for credit purposes. Commentary: Section 472 (d) describes the costing method to be used for LIFO layering.(d) 3-year averaging for increases in inventory value The beginning inventory for the first taxable year for which the method de- scribed in subsection (b) is used shall be valued at cost. Any change in the in- ventory amount resulting from the application of the preceding sentence shall be taken into account ratably in each of the 3 taxable years beginning with the first taxable year for which the method described in subsection (b) is first used. Commentary: Section 472 (e) states that a company cannot switch from LIFO to some other method once it has begun reporting taxable income with a LIFO inventory valuation, without permission from the IRS.(e) Subsequent inventories If a taxpayer, having complied with subsection (a), uses the method described in subsection (b) for any taxable year, then such method shall be used in all subsequent taxable years unless – (1) with the approval of the Secretary a change to a different method is au- thorized; or, (2) the Secretary determines that the taxpayer has used for any such subse- quent taxable year some procedure other than that specified in paragraph (1) of subsection (b) in inventorying the goods specified in the applica- tion to ascertain the income, profit, or loss of such subsequent taxable year for the purpose of a report or statement covering such taxable year (A) to ...