# Converting a P&L from LIFO to FIFO – Excel Model

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.

Conversion of reported financial statements from LIFO to FIFO is included in the Financial Reporting module of the CFA Level 1 Curriculum.

### 3-Statement Model – Excel Template

The P&L, Balance sheet, and Cash flow statements are three interrelated parts. The P&L feeds net income on the

### 3-Statement Model – Excel Template

The P&L, Balance sheet, and Cash flow statements are three interrelated parts. The P&L feeds net income on the liabilities and equity side of the Balance sheet. At the same time, we obtain Cash (an asset) by summing the bottom-line result of the Cash flow statement with previous year...

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The cash flow statement shows how a company generated and spent cash throughout a given timeframe. An important truth

### Cash Flow – Excel Template

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If the P&L statement shows how profitable a company was over a given timeframe, we can say that the

### Balance Sheet – Excel Template

If the P&L statement shows how profitable a company was over a given timeframe, we can say that the Balance sheet is like a momentary picture of the firm’s condition at the time of preparation. The Balance sheet shows what a company owns (assets) and what it owes (liabilities...