FASB Definition a) Net Realizable Value Estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation b) Customer A user or reseller Note The following definition is Pending Content see Transition Guidance in 606 10 65 1 A party that has contracted with an entity to obtain goods or services that are an output of the entitys ordinary activities in exchange for consideration Book definition a) What is net realizable value (NRV ) It is the estimated selling price of the product in the ordinary course of business reduced by reasonably predictable costs of completion, disposal, and transportation These costs could include things such as sales commissions and shipping costs In other words, it's the net amount a company expects to realize from the sale of the inventory b) Customer Cost of goods sold is adjusted each time goods are sold or returned by a customer However, at the end of a reporting period it's important to determine the ownership of goods that are in transit between the company and its customer s as well as between the company and its suppliers 1) How do the above definitions differ agree from your text

Question

FASB Definition  a) Net Realizable Value Estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation  b) Customer A user or reseller  Note  The following definition is Pending Content  see Transition Guidance in 606 10 65 1  A party that has contracted with an entity to obtain goods or services that are an output of the entitys ordinary activities in exchange for consideration  Book definition  a) What is net realizable value (NRV )  It is the estimated selling price of the product in the ordinary course of business reduced by reasonably predictable costs of completion, disposal, and transportation  These costs could include things such as sales commissions and shipping costs  In other words, it's the net amount a company expects to realize from the sale of the inventory b) Customer  Cost of goods sold is adjusted each time goods are sold or returned by a customer   However, at the end of a reporting period it's important to determine the ownership of goods that are in transit between the company and its customer s as well as between the company and its suppliers 1) How do the above definitions differ agree from your text

Accepted Answer

The Answer is in the image, click to view ...

Question

FASB Definition: a) Net Realizable Value Estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. b)

Step by Step Solution

Step: 1

Get Instant Access with AI-Powered Solutions

Step: 2

Step: 3

Ace Your Homework with AI