Specific inventory accounting issues
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Specific inventory accounting issues

4 years ago · 417.8 KB Download

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The accounting for revenue recognition, leases, and government assistance have rightfully been the focus of many entities and practitioners recently. However, other line items on the financial statements also frequently cause confusion as well. In this report, we’ll look at some specific issues that can be troublesome that relate to the assets that entities will hopefully turn into revenue, inventory including the accounting for:

  • Demonstration units

  • Spare parts/stores inventory

  • Consignment inventory

  • Stating inventories above cost

  • Types of cost typically included in inventory

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