Exploring Accounting And Reporting Alternatives For The Inventory LCM Procedure: A Teaching Aid

ASU Author/Contributor (non-ASU co-authors, if there are any, appear on document)
Dr.. Ken S. Brackney, Professor (Creator)
Institution
Appalachian State University (ASU )
Web Site: https://library.appstate.edu/

Abstract: There are many interesting theoretical and practical issues surrounding the application of the lower of cost or market (LCM) procedure in the valuation of inventories. These issues include the mechanics of recording the reduction in inventory value and the presentation of the effect in the financial statements. The purpose of this paper is to explore these issues in greater depth than is typically done in most intermediate accounting textbooks. In addition, an Excel spreadsheet is provided which can be used to help the student understand the issues involved.

Additional Information

Publication
Brackney, K. and Witmer, P. (2016). Exploring Accounting And Reporting Alternatives For The Inventory LCM Procedure: A Teaching Aid, Accounting Instructors' Report. (Summer): 1-9. NC Docks permission to re-print granted by author(s).
Language: English
Date: 2016
Keywords
accounting, lower of cost or market (LCM) procedure, financial statements, inventory value

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