Inventory shrinkage accrual method. (Tax Court memorandum opinions in Wal-Mart Stores and Kroger Co.): An article from: The Tax Adviser

This digital document is an article from The Tax Adviser, published by American Institute of CPA's on March 1, 1997. The length of the article is 701 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

From the supplier: The Tax Court ruled in two memorandum opinions that the accounting methods used by Wal-Mart Stores and Kroger Co. to estimate inventory shrinkage clearly reflected income. Under IRC section 471(a), inventory accounting must follow the trade or industry's best accounting practices and must clearly reflect income. The Court accepted the arguments of both taxpayers that the methods they used, which involved using historical data to develop a model correlating sales and shrinkage, were more accurate than the methods recommended by the IRS.

Citation Details
Title: Inventory shrinkage accrual method. (Tax Court memorandum opinions in Wal-Mart Stores and Kroger Co.)
Author: Carl Henne
Publication:The Tax Adviser (Magazine/Journal)
Date: March 1, 1997
Publisher: American Institute of CPA's
Volume: 28 Issue: n3 Page: 134(2)

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