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Why is it allowed to value inventories using methods such as FIFO, or LIFO or weighted average? Is Lower of cost or market (LCM) an
- Why is it allowed to value inventories using methods such as FIFO, or LIFO or weighted average?
- Is Lower of cost or market (LCM) an optional or required principle to implement? Also, what is meant by "market" in that rule?
- Can the disposal of an asset result in a gain or loss to be recognized? Does "carrying value" and "book value" mean the same thing for fixed assets?
- can a company change the method of depreciation on a particular fixed asset ? Does it go forward to apply the new method against that value?
- can a company use percentage of completion method any time it wants to? Or do certain criteria must be met in order to use it?
Please help me with these questions listed above!
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Financial Accounting
Authors: David Spiceland, Wayne M. Thomas, Don Herrmann
5th edition
1259914895, 978-1259914898
