Analysts are often faced with the challenge of comparing companies that use the FIFO cost flow method against those employing the LIFO approach. That’s why knowing how to convert a Profit & Loss Statement from LIFO to FIFO makes a big difference. Generally, we do that by factoring in the LIFO reserve.
This is a free Excel template illustrating how to translate a LIFO P&L Statement into a FIFO Statement. You can use it as a template to convert from LIFO to FIFO accounting.
Another related topics you might be interested to explore is Inventory Cost valuation.
This is an open-access Excel model in XLSX format that will be useful for anyone who wants to work as an Accountant, Financial Analyst, or Finance Manager.
You can now download the Excel template for free.
Conversion of reported financial statements from LIFO to FIFO is included in the Financial Reporting module of the CFA Level 1 Curriculum.