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If a material amount of inventory has been ordered through a formal purchase contract at the balance sheet date for future delivery at firm prices,
If a material amount of inventory has been ordered through a formal purchase contract at the balance sheet date for future delivery at firm prices,
| an appropriation of retained earnings is necessary. |
| this fact must be disclosed. |
| disclosure is required only if prices have since risen substantially. |
| disclosure is required only if prices have declined since the date of the order. |
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