存货计价方法相关外文文献Identifyingthefirmscharacteristicsaffectingthechoiceofinventoryvaluationmethods.DOCVIP

Identifying the firms characteristics affecting the choice of inventory valuation methods F.J. Arcelus and B.A. Trenholm Abstract The economic evaluation of the procurement and inventor} functions of a given firm depends, in part, on the method or methods used in the valuation of the various types of inventories common to most gomg concerns And yet very little is knowr about the reasons for the selection of the various methods, beyond tax considerations for U S firms This paper is ..-.tended as one step toward closing this gap by exa-rurung the choice behaviour of firms in a country such as Canada, whose restrictive tax laws remove taxes as the distinguishing valuation criterion To that effect, the various methods are classified into two categories, depending upon whether tie method is intended to increase income (e g, FIFO) or have a negligible effect on income (eg, Average) Financial and operating characteristics of firms from the well-known political visibility and contracting and monitoring hypotheses are identified in an effort to determine if these properties are germane in explaining the choice of inventory method Our results support me political visibility Hypothesis, whereby firms laiger .n size are more likely to reduce exposure by a.oidmg the selection of income increasing methods We conclude with comments on the applicability of the results to firms from other coun?es, of particular import in iigm of inc itxuu impetus of international accounting bodies toward the harmonization of accounting standards 1. Introduction The main purpose of this paper is to study the determinants for the selection of inventory valuation methods by firms for which tax considerations are not the salient decision criteria Most i^rd.cs the-s-ssties-cf ?=rmpUag inventory valuation methods have narrowed the choice down to two alternatives, LIFO and FIFO Tax considerations have given rise to th? familiar hypothesis that, in inflationary times, LIFO is preferable over FIFO because