20_Retail_Inventories_1 - the method that most clearly...

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
Click to edit Master subtitle style Retail Inventories – 1 Accountancy 301 Professor Clifton Brown 20 November 3, 2010
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Asset attributes (element  definition) Probable future  economic benefits Obtained/con- trolled by the entity Result of past  transactions/ events Relevant/reliable measurement attribute Lower of acquisition cost or market Estimation issues Cost flow Market
Background image of page 2
Estimation of “market” GAAP FASB Codification 330-10- 35 IFRS IAS 2 ¶ 28 Ceiling = Net realizable value Floor = Net realizable value – Normal  profit margin  Replacement cost Net realizable value
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Cost flow estimation GAAP FASB Codification 330-30- 9 Any one of several assumptions  such as FIFO, average, and LIFO The major objective is selecting 
Background image of page 4
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 6
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: the method that most clearly reflects periodic income IFRS IAS 2 23 Items not ordinarily interchangeable specific identification Otherwise, FIFO or weighted average Inventory turnover Average inventory Cost of goods sold Best Buy 7.33 (49.8 days) RadioShack 3.54 (103.1 days) Safeway 11.43 (31.9 days) What would be the effect if, say, Best Buy inventories were understated by 10%? Next class Monday, Nov 8 Wed, Nov 10 Retail Inventories 2 Readings Revsine Chapter 9 (part) IAS 2 (indicated ) Case Samuels Electronics Store (remainder) Presentations Teams 1 & 2 Write ups Due Saturday Midterm Exam 2 Team 2 Target Corp....
View Full Document

This note was uploaded on 06/05/2011 for the course ACCT 301 taught by Professor Yueli during the Spring '10 term at University of Illinois, Urbana Champaign.

Page1 / 6

20_Retail_Inventories_1 - the method that most clearly...

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online