Financial

Base Stock Method

Base Stock Method

A way to account for the value of a company's inventory. All base stock (the minimum needed to maintain operations) is calculated according to its purchase price, while the LIFO method is used for all additional inventory. The base stock method is not a generally accepted system. See also: Generally Accepted Accounting Principles.
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References in periodicals archive
Many Member States permit other inventory methods, including Last-in First-out (LIFO) and the base stock methods, for tax purposes.
(11) We recommend that the task force reconsider permitting LIFO or base stock methods of accounting for inventory.
TEI comments on EU's common consolidated corporate tax base
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