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Define inflationary economy under US GAAP?
define an inflationary economy
To adjust a companys LIFO cost of goods sold to FIFO cost of goods sold?
a decrease in the LIFO reserve is subtracted from LIFO cost of goods sold.
How do you solve for fifo and lifo?
yes
How do the implications of using lifo and fifo inventory affect the cost of goods sold?
LIFO stands for Last In First Out, so the last piece of inventory you create (including the costs for that last piece of inventory), is the cost base you use when you match sales against costs of goods sold (COGS) FIFO stands for First in First Out, so the oldest piece of inventory you have is what you match against your next sale. So, in a period of increasing input prices to your production (which is the general norm), under a LIFO model, you'll see higher prices immediately impacting your COGS, whereas under a FIFO model, it will take some time before those higher costs are impacting your COGS.
How do you determine the value of Ending Inventory do you use the value the inventory was purchase at or the value of the inventory at the months end?
Hello - I use the value the inventory was purchased at. If you need to, then you can devalue the inventory by stating a write down on obsolete goods, or alternatively, product that you will have to take a discount on. Technically, you have a few options - LIFO (last in, first out), FIFO most common - First in, first out, and average - average is not GAAP in Canadian accounting, but is workable in the states. Hope this helps you!
Is the moving average inventory method GAAP?
Moving average inventory method is not GAAP (generally accepted accounting principles). LIFO (last in, first out) or FIFO (first in, first out) are GAAP. FIFO is the most common method and easy to compute; however LIFO may be used but is much more complicated to compute unless your businesses computer system computes the LIFO computation.
What is an acceptable method of determining inventory cost under GAAP?
One can use FIFO, LIFO, or Average Costing as acceptable methods for accounting. Standard costing would be an unacceptable answer.
Is weighted average inventory valuation GAAP?
Yes, along with FIFO and LIFO, Weighted average is a generally accepted accounting principle.
What is the difference between GAAP costing and IFRS costing?
There are several costing items that has change in the adoption of IFRS, for in GAAP the stock valuation or material pricing adopted is LIFO and FIFO but in IFRS only FIFO is adopted etc
Who can issue disclosure requirements for companies under its jurisdiction that may exceed gaap?
Sec, gaap,
Major differences between IFRS and us gaap?
Well, one major difference is that IFRS's do not allow the use of LIFO for accounting for inventory. Many US companies use the LIFO method as a way to lower corporate taxes.The way to adjust inventory is different as well. In US GAAP the the revaluation amount is calculated by using the ceiling, floor and replacment cost. In IFRS the net present value is used and is calculated by subtracting the amount of selling costs from the selling price.
A change in inventory reporting from lifo to fifo is?
Allowed if it improves the usefulness of information in the financial statements
What are the advantages of LIFO?
The major advantage of LIFO comes from the assumption that costs of goods typically increase over time. When expensing goods under LIFO in an environment in which costs are increases, you typically will report lower net income than under alternative methods such as FIFO, which decreases your tax liability.
What is fifo lifo?
Lifo Fifo
Should deprciation should be charged on idle assets?
Under all of US GAAP, CDN GAAP and IFRS, idle assets should continue to be depreciated.
Is it true or false Under GAAP the accrual system of accounting is used by investors and banks for financial statements.?
Under GAAP, the accrual system of accounting is used by investors and banks for financial statements. True or False?
Define inflationary economy under US GAAP?
define an inflationary economy
