We have published a new white paper on Inventory valuations in the forecasted economy, which explains the requirements in the Financial Accounting Standards Board's (FASB) Accounting Standards Codification (ASC) Topic 330, Inventory, regarding the valuation of inventory. Forecasted economic conditions may result in entities having excess inventory, which would require them to write it down to an amount that is below its cost of manufacture or purchase.
Our white paper includes guidance and examples to:
- Identify and apply the appropriate accounting guidance to inventory valuation, based on the inventory costing method used
- Explain how to apply this guidance for interim reporting
- Identify accounting implications due to changes in expected manufacturing capacity