Under U.S. GAAP, LIFO is an acceptable inventory method. Listed below is financial statement information for three companies that use LIFO. All table numbers are in millions of dollars.

Assume these companies adopted IFRS, and thus were required to use FIFO, rather than LIFO. Prepare a table with the following columns as shown below.
(1) Difference between FIFO and LIFO inventory valuation.
(2) Revised IFRS net income using FIFO.
(3) Difference between FIFO and LIFO inventory valuation as a percent of total current assets.
(4) Revised IFRS net income as a percent of the reported net income.

a. Complete the table.
b. For which company would a change to IFRS for inventory valuation have the largest percentage impact on total current assets (Col. 3)?
c. For which company would a change to IFRS for inventory valuation have the largest percentage impact on net income (Col. 4)?
d. Why might Kroger have a negative impact on net income from using LIFO, while the other two companies have a positive impact on net income from usingLIFO?

Impact on Net Income from FIFO Inventory Using LIFO Rather To Total Current Assets (from than FIFO (from footnotes) $207 (49) Net Income as LIFO Inventory footnotes) $28,653 5,705 6,248 Reported ExxonMobil Kroger Ford Motor Autos and trucks only 11,553 4,902 5,450 $55,235 $19,280 70 7,450 40,560 1,212 (FIFO less LIFO) Total Current Assets FIFO less LIFO IFRS Net Income IFRS Net Income Col. (2) Reported Net Income