21_Retail_Inventories_2 - net earnings $57 million Assume...

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Click to edit Master subtitle style Retail Inventories – 2 Accountancy 301 Professor Clifton Brown 21 November 10, 2010
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LIFO valuation under GAAP When inventory prices are rising When inventory prices are declining things  operate in opposite directions Recent purchase cost  >  historical purchase  cost LIFO CGS  >   FIFO CGS LIFO Inv.  <   FIFO Inv. LIFO Income  <  FIFO  Income
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The Kroger Co. For the year ended January 30, 2010, The Kroger  Co. reported an $803 million LIFO reserve    LIFO = $4.902 billion          FIFO = $5.705 billion   Kroger’s assets were $23.093 billion, stockholders’ equity $4.906 billion, and 
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Unformatted text preview: net earnings $57 million Assume that the SEC were to adopt IFRS, requiring Kroger to revalue its inventories from LIFO to FIFO Financial statement effect? Significance? LIFO conformity IRS regulations (§ 1.472-2) require the use of LIFO for financial reporting purposes by those taxpayers electing to use LIFO for tax purposes Public policy issue with respect to adoption of IFRS Next class – Monday, Nov 15 Acquisition of long-lived tangible assets Readings Revsine Chapter 10 (part) IAS 16 (indicated ¶) Case Sonoma Baking Co. Presentations Team 3 Write ups None Team 7 – Bon Ton Stores...
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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.

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21_Retail_Inventories_2 - net earnings $57 million Assume...

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