返回列表 发帖

LIFO surplus

While making adjustment to LIFO statements to derive FIFO COGS and inventory values, do we need to consider rising or declining prices? I haven't seen any examples of declining prices so kind of confused if we need to do this.

This was covered extensively in the inventories chapter for last year but this year it isn't in the inventories reading at all. Instead there's just an example on it in a later reading. I really don't think you need to know it in too much detail.

FYI: As far as I can recall, if prices are falling the change in LIFO reserve in negative.

TOP

that's right, if prices are falling, change in LIFO reserve is negative. There were a lot of questions with either falling and rising prices of inventories in 2010 shwesser mocks.

TOP

Cinderella Wrote:
-------------------------------------------------------
> This was covered extensively in the inventories
> chapter for last year but this year it isn't in
> the inventories reading at all. Instead there's
> just an example on it in a later reading. I really
> don't think you need to know it in too much
> detail.
>
> FYI: As far as I can recall, if prices are falling
> the change in LIFO reserve in negative.

I am not sure if I need to worry about this one but definitely if schweser mock or Q bank cover this I won't overlook this either. There are many questions on Qbank and mock. I have seen with price rising and price declining as well. But not sure how to treat them.

TOP

I am on Reading 38 right now, and can confirm what Cinderella said - reserves, in general, haven't been covered in that much detail yet (not even in the chapter on Inventories).

My guess, from what I have seen thus far, is that they moved all the allowance-related topics (bad debt, inventory reserves, etc.) to Level II!?

TOP

返回列表