AcSEC does not have the authority to provide further guidance on level-A topics, such as fixed asset and inventory accounting
The lower selling prices, combined with unscheduled downtime and an adverse impact of average inventory accounting
, are expected to result in an operating loss for the division of approximately $3 million.
General Financial and Tax Consulting is positioned to focus on four areas: fixed asset inventory accounting
, federal depreciation look-back analysis, personal property tax compliance and reduction of personal property tax assessments.
Citing Thor Power Tool, 439 US 522 (1979), the court pointed to the Supreme Court's two-prong test for the acceptability of an inventory accounting
method: It must conform to GAAP and must clearly reflect income.
Management's estimate is based solely on current preliminary data and is subject to completion of its internal review of its inventory accounting
Figure 2 is a simplified decision tree for the portion of the hypothetical inventory accounting
dispute that hinges on the accuracy of the taxpayer's method.
For information regarding West Marine's merchandise inventory accounting
, please refer to "Management's Discussion and Analysis of Financial Condition and Results of Operation--Critical Accounting Policies and Estimates--Merchandise inventories and vendor allowances" in West Marine's Form 10-K for the fiscal year ended December 31, 2005 and in each Form 10-Q filed by West Marine in 2006.
471 (b) is not limited to the retail trade and (6) most taxpayers are now allowed to use the automatic change provisions to change their inventory accounting
method to a method allowing shrinkage estimates.
The Company noted that this year's third quarter results are not comparable to last year due, in part, to the different inventory accounting
methods (as defined below) as announced by the Company on October 24, 2006.
On examination of Kohler's 1984 consolidated return, the IRS determined that Sterling's method of inventory accounting
failed to clearly reflect income.
Both 10-Qs are delayed because the Company's independent registered public accounting firm has not yet rendered any decision with respect to a previously announced accounting issue involving the Company's historic inventory accounting
446(b) discretion because Wal-Mart's inventory accounting
practice was "sound," the standard for taxpayers with perpetual inventories under Regs.