Deloitte inventory guide

You must log in to view this content and have a subscription package that includes this content. ASC Inventory.

Other Publications. Additional Deloitte Guidance. Chapter 1 — Assets. Previous Section Next Section. GAAP are essentially the same. The primary differences between the two frameworks regarding the accounting for inventories relate to costing methods and impairment reversals, as summarized in the table below. First-in, first-out FIFO and weighted-average cost are acceptable accounting methods for determining cost of inventory.

Deloitte inventory guide

Making the case for inventory optimization has been saved. Making the case for inventory optimization has been removed. An Article Titled Making the case for inventory optimization already exists in Saved items. The days of inventory being considered an asset with expected rate recovery are long gone. Inventory investment is increasingly under scrutiny by both management and the utility commissions—meaning that inventory optimization needs to be effectively managed and budgeted. Chief among the cost of inventory is its ongoing carrying costs—including warehouse facility costs, labor costs associated with managing inventory, and recurring costs related to taxes and insurance. A secondary impact on inventory is related to regulatory lag. Inventory balances are typically included in the original rate base during rate case filings. The utility suffers a lag or delay in being able to recover these costs if ever in their rates. These two impacts on inventory costs help make the case for inventory optimization and using inventory analytics to your advantage. Perhaps the most worrisome costs are those that are unplanned and unforeseen. Once inventory is identified as obsolete, it must be segregated from inventory, with the book value written off to an operations and maintenance expense account. Most organizations assign obsolete inventory expenses directly to the business unit and asset base, and not at a corporate level.

Accordingly, as an alternative to disclosing cost of goods sold expense, IAS 2 allows an entity to disclose operating costs recognised during the period by nature of the cost raw materials and consumables, deloitte inventory guide, labour costs, other operating costs and the amount of the net change in inventories for the period.

Roadmap Series. Previous Section Next Section. Navigate SEC reporting obligations related to business acquisitions with our comprehensive Roadmap, featuring SEC guidance and Deloitte's interpretations. Stay current with the latest updates and examples. Roadmap: Business Combinations December This comprehensive guide discusses key considerations for entities that prepare carve-out financial statements.

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Deloitte inventory guide

You must log in to view this content and have a subscription package that includes this content. ASC Inventory. Previous Section Next Section. This Topic provides guidance on the accounting and reporting of inventory in the financial statements. Read more. Additional Resources. Deloitte Guidance — Overall.

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Search within this section Select a section below and enter your search term, or to search all click Inventory Guide. Follow along as we demonstrate how to use the site. Chief among the cost of inventory is its ongoing carrying costs—including warehouse facility costs, labor costs associated with managing inventory, and recurring costs related to taxes and insurance. This content is copyright protected. A revised version of IAS 2 was issued in December and applies to annual periods beginning on or after 1 January Previous Section Next Section. ASC Inventory. Accordingly, as an alternative to disclosing cost of goods sold expense, IAS 2 allows an entity to disclose operating costs recognised during the period by nature of the cost raw materials and consumables, labour costs, other operating costs and the amount of the net change in inventories for the period. ASC specifies the accounting and reporting for long-lived assets that are being held and used by an entity and for long-lived assets that the entity intends to sell or otherwise dispose of. Search site. Additional Resources. You've previously logged into My Deloitte with a different account. My Deloitte. Once entered, they are only hyphenated at the specified hyphenation points.

Other Publications. Additional Deloitte Guidance. Chapter 1 — Assets.

ASC further provides guidance on when a component, or group of components, of an entity that is classified as held for sale or disposed of must be reported as a discontinued operation. Any reversal should be recognised in the income statement in the period in which the reversal occurs. Inventory balances are typically included in the original rate base during rate case filings. Join the conversation. This Roadmap provides an overview of the guidance in ASC and ASC on fair value measurement and disclosure including the fair value option as well as insights into how to apply this guidance in practice. Choose your preferred language below. Consider removing one of your current favorites in order to to add a new one. The standard requires inventories to be measured at the lower of cost and net realisable value NRV and outlines acceptable methods of determining cost, including specific identification in some cases , first-in first-out FIFO and weighted average cost. All rights reserved. Inventory investment is increasingly under scrutiny by both management and the utility commissions—meaning that inventory optimization needs to be effectively managed and budgeted. Please ensure that you select Print Background colors and images when printing.