CPE Self-Study

Tax Accounting for Inventories - Tax Staff Essentials

Publisher: AICPA
  • $59.00-$69.00
    Tax Accounting for Inventories - Tax Staff Essentials Online Access Product #: 157653
    AICPA Member: $59.00
    Non-Member: $69.00
  • Contact Sales
    Contact a representative for group pricing or on-site training opportunities. 800.634.6780 (Option 1) | Contact Us Product #: GT-TSE.TAI

Save when you buy the complete Tax Staff Essentials, Level 2 online bundle.

There are multiple ways to derive an inventory valuation, but which method will affect the amount of taxable income recognized? This course details the methods of valuing inventory, including special rules for dealing with FIFO and LIFO. Effect of shrinkage and market will also be discussed and participants will learn about proposals to prohibit LCM and subnormal goods methods that include wash-sale goods.

This course also offers practical guidance on which costs are included or excluded from the UNICAP calculation and identifies which companies are subject to the UNICAP rules.

Learning Objectives

This course will prepare you to do the following:

  • Identify the allowable inventory valuation methods for tax purposes.
  • Examine scenarios in which a taxpayer may wish to use FIFO or LIFO inventory methods.
  • Recognize when a taxpayer can qualify to use the simplified dollar-value LIFO method.
  • Determine which costs are included or excluded from the UNICAP calculation.
  • Identify which companies are subject to the UNICAP rules.
  • Recognize the simplified production method.
  • Identify when an estimated shrinkage deduction can be claimed.
  • Identify when a corporation is allowed to reduce the inventory value of goods.

Key Topics

  • Inventory methods
  • Financial statement conformity
  • Switching inventory methods
  • IRC Section 263A, Uniform Capitalization Rules (UNICAP)
  • Direct Costs, indirect costs, burden rates
  • Estimating inventory shrinkage

Who Will Benefit?

  • Tax professionals in public accounting: seniors, supervisors, and managers; tax professionals within corporate finance or tax departments


Tax Section Members Receive Additional Savings!

When you log into this website with your AICPA member user account, the section/credential discount will be automatically applied during checkout. Should you have any questions or encounter any issues, please contact the AICPA Service Center at 888-777-7077 or service@aicpa.org.

Find out more information on the Tax Section.

Table of Contents

System Requirements

About the Authors

Barbara Aue, CPA

About the Publisher


About the AICPA The American Institute of CPAs is the world’s largest member association representing the accounting profession, with more than 412,000 members in 144 countries, and a history of serving the public interest since 1887. AICPA members represent many areas of practice, including business and industry, public practice, government, education and consulting. The AICPA sets ethical standards for the profession and U.S. auditing standards for private companies, nonprofit organizations, federal, state and local governments. It develops and grades the Uniform CPA Examination, and offers specialty credentials for CPAs who concentrate on personal financial planning; forensic accounting; business valuation; and information management and technology assurance. Through a joint venture with the Chartered Institute of Management Accountants, it has established the Chartered Global Management Accountant designation, which sets a new standard for global recognition of management accounting.

Product Reviews