ScholarLens Back to search
2020•Unpublished venueRequires access

ASC 330 INVENTORY

Joanne M. Flood

Open publisher page 0 citations

Abstract

The FASB has a current project on inventory disclosures. ASC 330, Inventory, consists of one Subtopic: ASC 330-10, Overall, which provides guidance on the accounting and reporting practices on inventory. ASC 330, Inventory, discusses the definition, valuation, and classification of inventory. There are two types of entities for which the accounting for inventories is relevant: merchandising and manufacturing. The retail inventory method is used by retailers to estimate the cost of their ending inventory. The retail method can be used under any of the three cost flow assumptions discussed earlier: average cost, FIFO, or LIFO. The use of standard cost approximations in financial reporting is acceptable only if adjustments to the standards are made at reasonable intervals to reflect current conditions and if their use approximates the results that would be obtained by directly applying one of the recognized cost flow assumptions.

About this research paper

What this paper is about

The FASB has a current project on inventory disclosures. ASC 330, Inventory, consists of one Subtopic: ASC 330-10, Overall, which provides guidance on the accounting and reporting practices on inventory. ASC 330, Inventory, discusses the definition, valuation, and classification of inventory. There are two types of entities for which the accounting for inventories is relevant: merchandising and manufacturing. The retail inventory method is used by retailers to estimate the cost of their ending inventory. The retail method can be used under any of the three cost flow assumptions discussed earlier: average cost, FIFO, or LIFO. The use of standard cost approximations in financial reporting is acceptable only if adjustments to the standards are made at reasonable intervals to reflect current conditions and if their use approximates the results that would be obtained by directly applying one of the recognized cost flow assumptions.

Why it matters

A significance statement is not available in the OpenAlex record.

Key contribution

A contribution statement is not available in the OpenAlex record.

Method / approach

Method details are not available in the OpenAlex metadata.

Main findings

Findings are not separately available in the OpenAlex metadata.

Limitations

Limitations are not available in the OpenAlex metadata.

Applications

Application details are not available in the OpenAlex metadata.

Available abstract

The FASB has a current project on inventory disclosures. ASC 330, Inventory, consists of one Subtopic: ASC 330-10, Overall, which provides guidance on the accounting and reporting practices on inventory. ASC 330, Inventory, discusses the definition, valuation, and classification of inventory. There are two types of entities for which the accounting for inventories is relevant: merchandising and manufacturing. The retail inventory method is used by retailers to estimate the cost of their ending inventory. The retail method can be used under any of the three cost flow assumptions discussed earlier: average cost, FIFO, or LIFO. The use of standard cost approximations in financial reporting is acceptable only if adjustments to the standards are made at reasonable intervals to reflect current conditions and if their use approximates the results that would be obtained by directly applying one of the recognized cost flow assumptions.

Key concepts: FIFO and LIFO accounting, Inventory valuation, Valuation (finance), Inventory cost, Cycle count, Perpetual inventory, FIFO (computing and electronics), Inventory management

Related papers

Related paper 1Related paper 2Related paper 3
Back to paper searchBrowse research topicsOriginal source
ASC 330 INVENTORY — Research Paper | ScholarLens