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FASB Reaches Decisions on Inventory Disclosures

During a September 19 discussion on inventory disclosures as part of its Disclosure Framework project, the Financial Accounting Standards Board (“FASB”) agreed that companies must disclose the following in annual financial statements: Inventory separated by component Inventory separated by measurement basis Inventory balance changes that are not particularly associated with the purchase, manufacture, or sale of inventory in the regular course of business A qualitative explanation of the costs capitalized into inventory The impact of last-in, first-out (“LIFO”) liquidations on income The replacement cost for LIFO inventory Inventory, by reportable segment or component for each reportable segment, if the information. Read More.

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