Description of this paper

How should the Company determine whether an invent...

Description

Solution


Question

How should the Company determine whether an inventory impairment exists at September 30, 2002? More specifically, how should management evaluate impairment? Should inventory be evaluated for impairment under the lower of cost or market method on a total inventory basis? Should inventory be evaluated for impairment under the lower of cost or market method by inventory category, e.g., processed pork products, live hogs, and developing animals? Should inventory be evaluated for impairment under the lower of cost or market method based on end product category, e.g., developing animals and live hogs to be processed internally are aggregated with processed pork products to comprise one group and developing animals and live hogs to be sold to third parties would be aggregated to comprise another group? Should inventory be evaluated for impairment under the lower of cost or market method on an individual basis to the extent possible, e.g., at the individual hog level? Should inventory be evaluated for impairment on some other basis not described above? If the Company determines that an impairment of inventory is necessary, should the impairment be recognized in an interim period if prices are expected to recover before year-end?

 

Paper#5966 | Written in 18-Jul-2015

Price : $25
SiteLock