A. Obtain and review ASC 330-10-30, paragraphs 1 through 8. Which costs are included in inventory...
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A. Obtain and review ASC 330-10-30, paragraphs 1 through 8. Which costs are included in inventory for US GAAP? |
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D. Obtain and review IAS 2, paragraphs 10 through 16. Which costs are included in inventory for IFRS? |
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G. In the case of cost inclusions and exclusions for inventory, which standard is more principle-based and which one is more rules based? |
Homework Answers
Answer to A & D:
Under US GAAP and IFRS all costs incurred to bring the inventories to their current position or the costs incurred to bring the inventories to its position of sale are included in the cost of inventories. These can include, conversion costs, taxes, transportation, handling costs among others.
Answer to G:
US GAAP standards are more rule based and IFRS is more principle based.
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