The SEC requires a company that uses LIFO to disclose the difference between the LIFO value of the inventory and the FIFO value of the inventory.

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The SEC requires companies using the Last-In, First-Out (LIFO) method for inventory accounting to disclose the difference between the inventory's LIFO value and its First-In, First-Out (FIFO) value. This requirement is to ensure transparency and provide a clearer picture of the company's financial health, as the choice of inventory accounting method can significantly affect reported earnings and inventory valuation.

The SEC Requires a Company That Uses LIFO to Disclose