The Effects of the Thor Power Tool Decision on the LIFO/FIFO Choice.
研究税法变化（Thor Power Tool案）如何影响企业财务报告中的会计方法选择，发现受影响的公司在1979年倾向于改用LIFO法，以符合税务和财务报告的一致性要求。
Abstract ABSTRACT: This note examines the extent to which firms affected by a change in the tax law respond by making changes in the accounting methods used for financial reporting. The specific tax issue considered is the Thor Power Tool case that limited the use of formula write-downs for inventories. Since LIFO could be approximated by formula write-downs, we hypothesize that affected firms will tend to switch to LIFO during 1979 (and only during 1979) for tax reporting purposes and (because of the LIFO conformity rule) for financial reporting purposes as well. The empirical analyses of inventory method changes are consistent with this hypothesis.