TAILIEUCHUNG - Lecture International financial statement analysis: Chapter 8 - CFA Institute

Chapter 8 - Inventories. In this chapter, students will be able to understand: Distinguish between costs included in inventories and costs recognized as expenses in the period in which they are incurred; describe different inventory valuation methods (cost formulas); calculate and compare cost of sales, gross profit, and ending inventory using different inventory valuation methods and using periodic and perpetual inventory systems; | Chapter 8 INVENTORIES Presenter’s name Presenter’s title dd Month yyyy LEARNING OUTCOMES Distinguish between costs included in inventories and costs recognized as expenses in the period in which they are incurred. Describe different inventory valuation methods (cost formulas). Calculate and compare cost of sales, gross profit, and ending inventory using different inventory valuation methods and using periodic and perpetual inventory systems. Calculate and explain effects of inflation and deflation of inventory costs on the financial statements and ratios of companies that use different inventory valuation methods (cost formulas or cost flow assumptions). Explain LIFO reserve and LIFO liquidation and their effects on financial statements and ratios. Convert a company’s reported financial statements from LIFO to FIFO for purposes of comparison. Describe implications of valuing inventory at net realizable value for financial statements and ratios. Describe the financial statement presentation of and disclosures relating to inventories. Explain issues that analysts should consider when examining a company’s inventory disclosures and other sources of information. Analyze and compare the financial statements and ratios of companies, including those that use different inventory valuation methods. 1 costs included in inventories Costs included in Inventories and recognized as expenses when goods are sold: Costs of purchase, . purchase price, net of discounts import duties and taxes transport and handling insurance during transport Costs of conversion Other costs incurred in bringing the inventories to their present location and condition Costs excluded from Inventories and recognized as expenses in period incurred: Abnormal costs incurred as a result of waste of materials, labor or other production conversion inputs Storage costs (unless required as part of the production process) All administrative overhead and selling costs Copyright © 2013 CFA Institute 2 LOS. .

• Tài chính doanh nghiệp
• International financial statement
• Financial statement
• International financial statement analysis
• Financial statement analysis
• Financial reporting
• Inventory valuation methods
• Financial reporting mechanics
• Financial analysis techniques
• Financial reporting quality
• Financial decisions
• Supplementary information
• Income statements
• Balance sheets
• Cash flow statements
• Long lived assets
• Noncurrent liabilities
• Credit quality
• Income taxes
• Postemployment benefit plans
• Intercorporate investments
• Multinational operations
• Evaluating quality
• International trade transactions
• Financial management
• Fundamentals of financial management
• International financial management
• Financial accounting
• International financial reporting standards
• Financial reporting standards
• Stockholders’ equity
• Financial statement auditing
• Audit planning
• Internal control
• Auditing business processes
• Financial statement audit
• Financial environments
• Accounting standards
• Stock exchange
• Joint stock companies
• Vietnam’s accounting standards
• Some fundamentals
• International differences
• Financial statements
• Financial reporting issues