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GAAP requires a Lower-of-Cost-or-Market as a conservative approach to the Balance Sheet reporting of Inventory. The textbook defines this as a limitation, due to the
GAAP requires a Lower-of-Cost-or-Market as a conservative approach to the Balance Sheet reporting of Inventory. The textbook defines this as a limitation, due to the departure of the cost principle in favor of the fair market value approach. How is this impacted by recent fluctuations in various market prices (hint: oil???) and how would you advise to report inventory values during such times?
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