Description of this paper

The following inventory information was taken from...

Description

Solution


Question

The following inventory information was taken from the records of Kleinfeld Inc.: Historical cost 12000 replacement cost 7000 expected selling price 9000 expected selling cost 500 Normal profit margin 10% of price 1. Under IFRS (IAS 2), what should the Balance Sheet report for Inventory? 2. Under U.S. GAAP, what should the Balance Sheet report for Inventory? Any loss or gain should be reported based on U.S. GAPP in the income statement? 3. Assume that subsequent to your adjustment the expected selling price increases to $13,000. (All the rest of the facts are the same.) What adjustment to inventory should be made under a) IFRS, b) U.S. GAAP after this event?

 

Paper#4429 | Written in 18-Jul-2015

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