Why is the disclosure of the lifo reserve useful

Reference no: EM131410919

General Electric uses the LIFO inventory cost flow assumption, reporting inventories on its 2008 balance sheet of $13.7 billion and a LIFO reserve of approximately $706 million. What would be GE's 2008 inventory balance if it used the FIFO assumption instead? Why is the disclosure of the LIFO reserve useful to financial statement users?

Reference no: EM131410919

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