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Financial statement purposes - PowerPoint PPT Presentation

FA2: Module 7 Inventories and Cost of Goods Sold

FA2: Module 7 Inventories and Cost of Goods Sold. Definition of inventory Cost of inventory Inventory systems Effect of inventory errors Costing inventory Inventory valuation The gross profit method Retail inventory method Valuation of inventory at NRV. 1. Definition of inventory.

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Depreciation

Depreciation. No requirement to use the same: Depreciation method or Useful life For income tax and financial statement purposes Generally, method used for income tax purposes (MACRS) provides more depreciation in initial years of asset Present value of income tax benefits. MACRS.

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Financial statement purposes - PowerPoint PPT Presentation

FA2: Module 7 Inventories and Cost of Goods Sold

Depreciation