inventory in temporal method method

noel

for the evenly bought and sold inventory we will use weighted average cost of inventory

But am i correct in saying tht for FIFO we would use historical rate for COGS and current for inventory? And opposite for LIFO?

Thanks

spreads

under temproal, inventory is at historical cost, as stated before. If inventory is kept track at a weighted average value, then the historical cost becomes a weighted average value, and thus you are effectively using the avg rates instead of historical rate, althoguh techincally you are still using the historicla rate. Im pretty sure thats correct.

yospaghetti

Plzzz confirm it.

zephyranalyst

Temporal:
COGS/Inventory - historical

Current:
COGS - Average
Inventory - Current

luda002

madamesoleil Wrote:
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> I would use the same exchange rate for COGS and
> inventory: historical rate for temporal, average
> rate for current. Same logic applies to
> depreciation and PPE.


Not quite ...All B/S items under current use current rate, except common stock.

BelalM

I would use the same exchange rate for COGS and inventory: historical rate for temporal, average rate for current. Same logic applies to depreciation and PPE.

busterbluth

stingreye Wrote:
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> Thats my understanding Chuckrox8 but wording may
> indicate that the correct historical rate is the
> avg rate.

Very true. I remember screwing up a vignette because I didn't read to use the Avg rate. The average rate makes much more since for Inv and COGS in my opinion. Nothing surprises me about IFRS anymore, it's all backwards.



Edited 1 time(s). Last edit at Tuesday, May 31, 2011 at 07:23PM by Chuckrox8.

neil1234

Thats my understanding Chuckrox8 but wording may indicate that the correct historical rate is the avg rate.

random_walker47

Inventory, non-monetary asset, would be remeasured at the historical rate under all scenarios regardless of inventory accounting correct?

smuggycfa

never saw current for inventory under temporal.