The 2011 inventory activity for Helio Brothers, a discount retailer that prepares financial statements under IFRS using

Question:

The 2011 inventory activity for Helio Brothers, a discount retailer that prepares financial statements under IFRS using the FIFO cost flow assumption, is provided below.

Many of the items in the company's inventory at the end of 2011 were judged to be outdated, and on average the marker value of the remaining inventory was estimated at $1.50 per item.REQUIRED:a. Compute Helio's ending inventory and net income for 2011.b. Early in 2012 styles appeared to change, and the average market price of the inventory written down at the end of 2011 rebounded to $2,80 per item. Record the entry made by Helio to recognize the inventory recovery. What entry would Helio record if it used U.S. GAAP instead ofIFRS?

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =... Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the...