According to my readings, US GAAP states that "Inventory method used for financial statements and tax purposes must be the same." However, as I progress into my readings, I notice that "When determining taxable income, companies will tend to select allowable accounting methods wthat will minimize the taxable income upon which income taxes are levied."
Don't these two ideas contradict themselves? Or is it that, ultimately, the 2 tax amounts must equate to one another, but in the short term, it's OK if they deviate with one another due to the timing/temporary differences?