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lower of cost or market

   Also found in: Acronyms, Wikipedia 0.01 sec.
lower of cost or market
A method for determining an asset's value such that either the original cost or the current replacement cost, whichever is lowest, is used for financial reporting purposes. For example, an inventory item originally purchased for $50 that has a current market value of $30 would appear on the firm's balance sheet at $30. The use of lower of cost or market is considered a conservative method of valuing assets.


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If your bank offers to finance 75 percent LTV, you may borrower 75 percent of the lower of cost or market, in this case $700,000.
Shopping for a commercial loan? Not all loans are created equal by Young, Steven M. / Indiana Business Magazine
Current Marketable Equity Securities Portfolio: Security Market Cost Change ERR ERR $0 $0 $0 Recovery Recognized (Loss) ERR ERR Allowance for Decline in Value: Allowance account before adjustment Adjustment: Increase (Decrease) ERR Allowance account after adjustment $0 Total cost $0 Less: Allowance account after adjustment 0 Lower of cost or market $0 Income Statement Effect: Increase (Decrease) Pre-tax After-tax Income Statement Tax Income Statement Effect Effect Effect ERR ERR ERR
Taming SFAS 12 with a microcomputer by Sharp, Andrew D. / The National Public Accountant
1 million of lower of cost or market pretax charges to write down the value of inventory as of March 31 and June 30, 2009.
Olympic Steel Reports 2009 Second Quarter Results by Business Wire
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