International Financial Reporting Standards: International Financial Reporting Standards shortened as IFRS. These are the rules and principles obeyed or followed globally; so to devise financial statements or to record transactions and events in the books of accounts by the companies. United States Generally Accepted Accounting Principles: It is generally known with the name US GAAP and as the name suggests, US GAAP comprises of the guidelines or rules to prepare financial reports by the companies in United States so to maintain uniformity in accounting practices in the country. Cost Flow Assumption: The cost flow assumption defines a method to conclude the flow of cost in case of estimating the costs relating to that of goods sold and of ending inventory. Merchandise Inventory: Merchandise inventory is the one which is purchased from the manufacturer with the purpose to sell it to the third party. Wholesalers, retailers, or distributors are ones who indulge into purchasing the products at a lower price and selling them at a higher price so to earn profits. Lower of Cost or Market: Lower of cost or market also known as LCM is an approach in which the inventory is recorded in the Balance Sheet at the cost of inventory or at the current market −the one with the lowest value. a. The difference between the IFRS and US GAAP accounting as for the items and costs making merchandise inventory.

Question

Want to see the full answer?

Answer 1

Question

Chapter 5, Problem 23QS

To determine

International Financial Reporting Standards:

International Financial Reporting Standards shortened as IFRS. These are the rules and principles obeyed or followed globally; so to devise financial statements or to record transactions and events in the books of accounts by the companies.

United States Generally Accepted Accounting Principles:

It is generally known with the name US GAAP and as the name suggests, US GAAP comprises of the guidelines or rules to prepare financial reports by the companies in United States so to maintain uniformity in accounting practices in the country.

Cost Flow Assumption:

The cost flow assumption defines a method to conclude the flow of cost in case of estimating the costs relating to that of goods sold and of ending inventory.

Merchandise Inventory:

Merchandise inventory is the one which is purchased from the manufacturer with the purpose to sell it to the third party. Wholesalers, retailers, or distributors are ones who indulge into purchasing the products at a lower price and selling them at a higher price so to earn profits.

Lower of Cost or Market:

Lower of cost or market also known as LCM is an approach in which the inventory is recorded in the Balance Sheet at the cost of inventory or at the current market −the one with the lowest value.

a.

The difference between the IFRS and US GAAP accounting as for the items and costs making merchandise inventory.

b.

To determine

To identify: At least two acceptable cost flow assumptions if companies under IFRS apply a cost flow assumption to assign costs to inventory.

c.

To determine

To Identify: The way IFRS and US GAAP differ in accounting for any subsequent decline in the value of inventory after the written down value has been recorded as per LCM.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Sports Haven keeps an inventory of FITBIT Wearable Technology. Assume an inventory of 35 FitBits at the beginning of the year at a cost of $44.32 each. Additional FitBits were purchased as follows: 15 at $45.50 each on March 22, 30 at $45.80 each on May 2, 10 at $46.20 each on July 14, and 40 at $43.90 each on September 9. Use LIFO to determine the cost of the ending inventory. Assume 32 FitBits in inventory at the end of the year.

Sports Haven keeps an inventory of FITBIT Wearable Technology. Assume an inventory of 35 FitBits at the beginning of the year at a cost of $44.32 each. Additional FitBits were purchased as follows: 15 at $45.50 each on March 22, 30 at $45.80 each on May 2, 10 at $46.20 each on July 14, and 40 at $43.90 each on September 9. Use FIFO to determine the cost of the ending inventory. Assume 32 FitBits in inventory at the end of the year.

A car dealer acquires a used car for $15,000, with terms FOB shipping point. Compute total inventory costs assigned to the used car if additional costs include $150 for transportation-in. $190 for shipping insurance. $730 for car import duties. $200 for advertising. $1,500 for sales staff salaries. $200 for trimming shrubs.

Answer 2

Question

Chapter 5, Problem 23QS

To determine

International Financial Reporting Standards:

International Financial Reporting Standards shortened as IFRS. These are the rules and principles obeyed or followed globally; so to devise financial statements or to record transactions and events in the books of accounts by the companies.

United States Generally Accepted Accounting Principles:

It is generally known with the name US GAAP and as the name suggests, US GAAP comprises of the guidelines or rules to prepare financial reports by the companies in United States so to maintain uniformity in accounting practices in the country.

Cost Flow Assumption:

The cost flow assumption defines a method to conclude the flow of cost in case of estimating the costs relating to that of goods sold and of ending inventory.

Merchandise Inventory:

Merchandise inventory is the one which is purchased from the manufacturer with the purpose to sell it to the third party. Wholesalers, retailers, or distributors are ones who indulge into purchasing the products at a lower price and selling them at a higher price so to earn profits.

Lower of Cost or Market:

Lower of cost or market also known as LCM is an approach in which the inventory is recorded in the Balance Sheet at the cost of inventory or at the current market −the one with the lowest value.

a.

The difference between the IFRS and US GAAP accounting as for the items and costs making merchandise inventory.

b.

To determine

To identify: At least two acceptable cost flow assumptions if companies under IFRS apply a cost flow assumption to assign costs to inventory.

c.

To determine

To Identify: The way IFRS and US GAAP differ in accounting for any subsequent decline in the value of inventory after the written down value has been recorded as per LCM.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 5, Problem 23QS

To determine

International Financial Reporting Standards:

International Financial Reporting Standards shortened as IFRS. These are the rules and principles obeyed or followed globally; so to devise financial statements or to record transactions and events in the books of accounts by the companies.

United States Generally Accepted Accounting Principles:

It is generally known with the name US GAAP and as the name suggests, US GAAP comprises of the guidelines or rules to prepare financial reports by the companies in United States so to maintain uniformity in accounting practices in the country.

Cost Flow Assumption:

The cost flow assumption defines a method to conclude the flow of cost in case of estimating the costs relating to that of goods sold and of ending inventory.

Merchandise Inventory:

Merchandise inventory is the one which is purchased from the manufacturer with the purpose to sell it to the third party. Wholesalers, retailers, or distributors are ones who indulge into purchasing the products at a lower price and selling them at a higher price so to earn profits.

Lower of Cost or Market:

Lower of cost or market also known as LCM is an approach in which the inventory is recorded in the Balance Sheet at the cost of inventory or at the current market −the one with the lowest value.

a.

The difference between the IFRS and US GAAP accounting as for the items and costs making merchandise inventory.

b.

To determine

To identify: At least two acceptable cost flow assumptions if companies under IFRS apply a cost flow assumption to assign costs to inventory.

c.

To determine

To Identify: The way IFRS and US GAAP differ in accounting for any subsequent decline in the value of inventory after the written down value has been recorded as per LCM.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 5, Problem 23QS

To determine

International Financial Reporting Standards:

International Financial Reporting Standards shortened as IFRS. These are the rules and principles obeyed or followed globally; so to devise financial statements or to record transactions and events in the books of accounts by the companies.

United States Generally Accepted Accounting Principles:

It is generally known with the name US GAAP and as the name suggests, US GAAP comprises of the guidelines or rules to prepare financial reports by the companies in United States so to maintain uniformity in accounting practices in the country.

Cost Flow Assumption:

The cost flow assumption defines a method to conclude the flow of cost in case of estimating the costs relating to that of goods sold and of ending inventory.

Merchandise Inventory:

Merchandise inventory is the one which is purchased from the manufacturer with the purpose to sell it to the third party. Wholesalers, retailers, or distributors are ones who indulge into purchasing the products at a lower price and selling them at a higher price so to earn profits.

Lower of Cost or Market:

Lower of cost or market also known as LCM is an approach in which the inventory is recorded in the Balance Sheet at the cost of inventory or at the current market −the one with the lowest value.

a.

The difference between the IFRS and US GAAP accounting as for the items and costs making merchandise inventory.

b.

To determine

To identify: At least two acceptable cost flow assumptions if companies under IFRS apply a cost flow assumption to assign costs to inventory.

c.

To determine

To Identify: The way IFRS and US GAAP differ in accounting for any subsequent decline in the value of inventory after the written down value has been recorded as per LCM.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 5, Problem 23QS

To determine

International Financial Reporting Standards:

International Financial Reporting Standards shortened as IFRS. These are the rules and principles obeyed or followed globally; so to devise financial statements or to record transactions and events in the books of accounts by the companies.

United States Generally Accepted Accounting Principles:

It is generally known with the name US GAAP and as the name suggests, US GAAP comprises of the guidelines or rules to prepare financial reports by the companies in United States so to maintain uniformity in accounting practices in the country.

Cost Flow Assumption:

The cost flow assumption defines a method to conclude the flow of cost in case of estimating the costs relating to that of goods sold and of ending inventory.

Merchandise Inventory:

Merchandise inventory is the one which is purchased from the manufacturer with the purpose to sell it to the third party. Wholesalers, retailers, or distributors are ones who indulge into purchasing the products at a lower price and selling them at a higher price so to earn profits.

Lower of Cost or Market:

Lower of cost or market also known as LCM is an approach in which the inventory is recorded in the Balance Sheet at the cost of inventory or at the current market −the one with the lowest value.

a.

The difference between the IFRS and US GAAP accounting as for the items and costs making merchandise inventory.

b.

To determine

To identify: At least two acceptable cost flow assumptions if companies under IFRS apply a cost flow assumption to assign costs to inventory.

c.

To determine

To Identify: The way IFRS and US GAAP differ in accounting for any subsequent decline in the value of inventory after the written down value has been recorded as per LCM.

Answer 6

Chapter 5, Problem 23QS

To determine

International Financial Reporting Standards:

International Financial Reporting Standards shortened as IFRS. These are the rules and principles obeyed or followed globally; so to devise financial statements or to record transactions and events in the books of accounts by the companies.

United States Generally Accepted Accounting Principles:

It is generally known with the name US GAAP and as the name suggests, US GAAP comprises of the guidelines or rules to prepare financial reports by the companies in United States so to maintain uniformity in accounting practices in the country.

Cost Flow Assumption:

The cost flow assumption defines a method to conclude the flow of cost in case of estimating the costs relating to that of goods sold and of ending inventory.

Merchandise Inventory:

Merchandise inventory is the one which is purchased from the manufacturer with the purpose to sell it to the third party. Wholesalers, retailers, or distributors are ones who indulge into purchasing the products at a lower price and selling them at a higher price so to earn profits.

Lower of Cost or Market:

Lower of cost or market also known as LCM is an approach in which the inventory is recorded in the Balance Sheet at the cost of inventory or at the current market −the one with the lowest value.

a.

The difference between the IFRS and US GAAP accounting as for the items and costs making merchandise inventory.

Answer 7

Chapter 5, Problem 23QS

To determine

International Financial Reporting Standards:

International Financial Reporting Standards shortened as IFRS. These are the rules and principles obeyed or followed globally; so to devise financial statements or to record transactions and events in the books of accounts by the companies.

United States Generally Accepted Accounting Principles:

It is generally known with the name US GAAP and as the name suggests, US GAAP comprises of the guidelines or rules to prepare financial reports by the companies in United States so to maintain uniformity in accounting practices in the country.

Cost Flow Assumption:

The cost flow assumption defines a method to conclude the flow of cost in case of estimating the costs relating to that of goods sold and of ending inventory.

Merchandise Inventory:

Merchandise inventory is the one which is purchased from the manufacturer with the purpose to sell it to the third party. Wholesalers, retailers, or distributors are ones who indulge into purchasing the products at a lower price and selling them at a higher price so to earn profits.

Lower of Cost or Market:

Lower of cost or market also known as LCM is an approach in which the inventory is recorded in the Balance Sheet at the cost of inventory or at the current market −the one with the lowest value.

a.

The difference between the IFRS and US GAAP accounting as for the items and costs making merchandise inventory.

Answer 8

b.

To determine

To identify: At least two acceptable cost flow assumptions if companies under IFRS apply a cost flow assumption to assign costs to inventory.

Answer 9

b.

To determine

To identify: At least two acceptable cost flow assumptions if companies under IFRS apply a cost flow assumption to assign costs to inventory.

Answer 10

c.

To determine

To Identify: The way IFRS and US GAAP differ in accounting for any subsequent decline in the value of inventory after the written down value has been recorded as per LCM.

Answer 11

c.

To determine

To Identify: The way IFRS and US GAAP differ in accounting for any subsequent decline in the value of inventory after the written down value has been recorded as per LCM.

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 15

Ch. 5 - Use the following information from Marvel Company...Ch. 5 - Use the following information from marvel company...Ch. 5 - Use the following information from Marvel Company...Ch. 5 - Use the following information from Marvel company...Ch. 5 - Periodic: A company reports the following...Ch. 5 - Prob. 6MCQ Ch. 5 - Prob. 1DQ Ch. 5 - Prob. 2DQ Ch. 5 - Prob. 3DQ Ch. 5 - Prob. 4DQ

Solution Summary: The author compares the IFRS and US GAAP accounting on the basis of inventory accounting.

Videos

To identify: At least two acceptable cost flow assumptions if companies under IFRS apply a cost flow assumption to assign costs to inventory.

To Identify: The way IFRS and US GAAP differ in accounting for any subsequent decline in the value of inventory after the written down value has been recorded as per LCM.

Want to see the full answer?

Chapter 5 Solutions