LIFO reserve, beginning of year ($1,000)

{
  "id": "MLC-T-ECS-001075",
  "term": "LIFO reserve, beginning of year ($1,000)",
  "field": "Economic statistics",
  "definition": "LIFO reserve is the difference between the first-in, first-out (FIFO) cost of inventories (gross value) and last-in, first-out (LIFO) cost of inventories (net value) owned on December 31st of the year prior to the reporting year, regardless of where held. Excludes the value of inventories held by the establishment but owned by others.\n\nData are shown in thousands of dollars ($1,000).\n\nSector-Specific Information\n\nManufacturing and Mining Sectors\n\nWhen using inventory data by stage of fabrication for (all industries) and at the three-digit subsector level, it should be noted that an item treated as a finished product by an establishment in one industry may be reported as a raw material by an establishment in a different industry. For example, the finished-product inventories of a steel mill would be reported as raw materials by a stamping plant. Such differences are present in the inventory figures by stage of fabrication shown for all publication levels. There are several valuation methods used. The valuation methods are based on the costs incurred to acquire the inventory and get it ready for sale. LIFO users were asked to first report inventory values prior to the LIFO adjustment and then to report the LIFO reserve and the LIFO value after adjustment for the reserve. LIFO reserve is the difference between the current cost (e.g., First-In, First-Out (FIFO) of inventories (gross value) and the LIFO carrying value (net value).\n\nTotal inventories and three stages of fabrication were collected for the Manufacturing industry:\n\n• Finished goods\n\n• Work-in-process\n\n• Materials, supplies, parts, fuels, etc.\n\nTotal inventories and two stages of fabrication were collected for the Mining industry:\n\n• Mineral products, crude petroleum, and natural gas liquids\n\n• Supplies, parts, fuels, etc.\n\nInventory valuation methods include:\n\n• Subject to Last-in, First-out (LIFO) costing (including LIFO reserve and value)\n\n• Not subject to LIFO costing\n\n• Valuation method not reported\n\n• Amount subject to LIFO reported without associated reserve and value\n\n• First-in, first-out (FIFO) inventory costing\n\n• Average cost\n\n• Standard cost\n\n• Other non-LIFO inventory",
  "references": [
    "U.S. Census Bureau Glossary"
  ],
  "url": "https://mlchart.com/terminology/economic-statistics/lifo-reserve-beginning-of-year-1000/"
}