TAILIEUCHUNG - Intermediate Accounting - Chap009

Generally accepted accounting principles, known as GAAP, require that inventories be carried on the balance sheet at lower-of-cost-or-market. Lower-of-cost-or-market represents a departure from the historical cost concept, but is considered a conservative accounting measure. | Inventories: Additional Issues 9 Chapter 9: Inventories: Additional Issues. Learning Objective Understand and apply the lower-of-cost- or-market rule used to value inventories. LO1 Our first learning objective in Chapter 9 is to understand and apply the lower-of-cost-or- market rule used to value inventories. Lower of Cost or Market (LCM) GAAP requires that inventories be carried at cost or current market value, whichever is lower. LCM is a departure from historical cost and is a conservative accounting method. Generally accepted accounting principles, known as GAAP, require that inventories be carried on the balance sheet at lower-of-cost-or-market. Lower-of-cost-or-market represents a departure from the historical cost concept, but is considered a conservative accounting measure. We will refer to lower-of-cost- or-market by using the term LCM. Determining Market Value Net Realizable Value (Ceiling) Net Realizable Value less Normal Profit (Floor) Market value is NOT necessarily the .

• Kế toán - Kiểm toán
• Intermediate Accounting
• Balance Sheet
• Income Statement
• Cash Flows
• Economic Environment
• Financial Reporting
• Accrual Accounting
• Lecture Intermediate accounting
• Financial Accounting
• Accounting process
• Accounting equation
• Accounting processing cycle
• Stock issuance
• Estimating reserves
• Liquidating dividends
• Accounting changes
• Error corrections
• Accounting choices
• Theoretical structure
• Financial accounting environment
• Accounting for leases
• Leasing environment
• Accounting by lessee
• Special accounting problems
• Cash versus accrual accounting
• International standard setting
• Accounting standards
• Accounting assists
• The challenges facing accounting
• Income taxes
• Accounting for income taxes
• Deferred tax liabilities
• Error analysis
• Accounting policy
• Accounting estimate
• Accounting policies
• Accounting information system
• Measurement issues
• Characteristics of accounting
• Capital allocation process