Wiley GAAP: Financial Statement Disclosure Manual

22ASC 330 INVENTORY

1. Technical Alert
2. Authoritative Literature
   1. Subtopic
      1. Scope
      2. Classification
   2. Accounting for Inventories
      1. Control of Goods
      2. Costs Included in Inventory
      3. Cost Flow Assumptions
      4. Valuation Issues
      5. Lower of Cost or Net Realizable Value (NRV)
      6. Lower of Cost or Market (LCM)
      7. Retail Inventory Method
      8. LIFO Retail Inventory Method
      9. Standard Costs
3. Practice Alert
4. Presentation and Disclosure Requirements
   1. Presentation
   2. Disclosure
5. Presentation and Disclosure Examples
   1. Example 22.1: Inventory Accounting Policy, Including Basis of Valuations, Method of Determining Cost, Shrinkage, Reserves, and Vendor Payments
      1. Inventory
   2. Example 22.2: Accounting Policy, Merchandise Inventory, Valued Using the LIFO Retail Inventory Method, Including Major Components of Inventory and Change in Basis
   3. Example 22.3: Inventory Detail Disclosed in the Notes with Change in Basis Note
   4. Example 22.4: Effect of Change in Basis of Stating Inventory
   5. Example 22.5: Manufacturing Inventories Showing Adjustment Due to Change in Cost Basis
   6. Example 22.6: Reserve for Obsolete Inventory
   7. Example 22.7: LIFO Inventory Liquidation
   8. Example 22.8: Purchase Commitment
   9. Example 22.9: Provision for Inventory Losses

TECHNICAL ALERT

The FASB has a current project on inventory disclosures. Preparers are encouraged to monitor that project at fasb.org.

AUTHORITATIVE LITERATURE

Subtopic

ASC 330, Inventory, consists of one Subtopic:

• ASC 330‐10, Overall, which provides guidance on the accounting and reporting practices on inventory. ...