Briefly explain the difference between Lower of Cost or Net Realizable Value (LCNRV) and Lower of Cost or Market (LCM) approaches to valuing inventory at the end of a reporting period. When should each be used?

In addition, briefly explain how a material adjustment to inventory due to application of either LCNRV or LCM should be reported in the financial statements. What ethical issues must be considered when valuing inventory? In your answer, please describe their impact on the financial statements.