Cost Flow Assumptions First-in, First-out (FIFO) method Last-in, First-out (LIFO) method Weighted average method First-in, First-out (FIFO) method Old purchases are assumed to be sold
Author: accta
1. Classification of inventories: Raw materials, work-in-process, finished goods 2. Goods in transit: Free on board (FOB) shipping point, FOB destination, seller’s inventory, buyer’s inventory
Lower of Cost or Market (LCM) 1. At the end of each period, inventory is measured at the lower of cost or market. 2. Market
Initial measurement of property, plant and equipment 1. Measured at cost 2. Cost includes (A) (A) all costs necessary to make the asset ready for
Real Estate Sales SFAS 66, October 1982 “Accounting for Sales of Real Estates” FASB Interpretation (FIN) 43, June 1999 “Real Estate Sales an interpretation of
Intangible Assets –> Type 1: Intangible assets with “finite” useful life –> Type 2: Intangible assets with “indefinite” useful life Intangible assets with “finite” useful