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Accounting Policies Parent Company has control over several entities. Parent Company reports inventory using the firstin, firstout (FIFO) cost formula. The other entities report inventories
Accounting Policies
Parent Company has control over several entities. Parent Company reports inventory using the firstin, firstout (FIFO) cost formula. The other entities report inventories using the FIFO cost formula or the weightedaverage (WA) cost formula. See inventory values below.
Parent Company | Entity A | Entity B | Entity C | |
FIFO | 2000 | 1200 | 1500 | 2200 |
WA | 1900 | 1000 | 1300 | 2000 |
Required: Utilize eIFRS to find authoritative guidance regarding the amount Parent Company should report for inventory in its consolidated financial statements? Be sure to cite specific authoritative literature to justify your answer.
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