LIFO Follow$-$up

Very interesting discussion this week. One clarification. According to the LIFO conformity rule, a firm that uses LIFO for income tax purposes must also use LIFO for financial reporting purposes. LIFO is one area where tax accounting and financial accounting are the same.

For those of you that believe that LIFO is simply a tax avoidance scheme, please revisit the matching principle. During periods of rising prices, a portion of taxable income consists of inflation. In other words, taxes are collected on inflation, not "real" profit. If LIFO is eliminated, should FIFO profit be indexed for inflation? Why or why not?

One more question. Currently, LIFO is only allowed in the U$.$S$.$ Do you think LIFO should be allowed under IFRS? Why or why not?