Inventory Accounting


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Related to Inventory Accounting: Inventory management

Inventory Accounting

A branch of accounting that values the inventory of companies. Inventory accounting may (or may not, depending on the tool being used) increase an inventory's value if its market price increases or if its carrying costs are low. On the other hand, it may (or many not) decrease the value if its depreciation is high or if the inventory is becoming obsolete.
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AcSEC does not have the authority to provide further guidance on level-A topics, such as fixed asset and inventory accounting.
Resolved: start-up costs are not assets
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.
Acquisition price establishes base-year cost of bargain inventory
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.
A systematic approach to tax controversy management
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.
Year-end inventory shrinkage estimates
446(b) discretion because Wal-Mart's inventory accounting practice was "sound," the standard for taxpayers with perpetual inventories under Regs.
Tax Court introduces financial statement materiality into the tax law
Companies using the perpetual method of inventory accounting often take "cycle counts" of inventory on a rotation basis during the tax year and do not necessarily take a year-end inventory count.
Inventory stub period shrinkage estimates - the Tax Court sows confusion
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