U.S. GAAP Codification of Accounting Standards

U.S. GAAP Codification Accounting Standards, ASC

Principles of Accounting Intermediate Financial AccountingU.S. GAAP Textbook
Accounting by Topic Accounting Terms Dictionary

U.S. GAAP Accounting Standards
Codification Topic 330: Inventory

Codification Topic 330

Tangible personal property of the following:
1. held for sale --> merchandise, finished goods 
2. in the course of production --> work in process
3. to be consumed in the production --> raw materials

Initial measurement
Inventories are measured at cost when first recognized

Cost flow assumptions
One of the following assumptions is made to determine the cost of inventory:
1. First-in First-out (FIFO): Items that came in first are sold first
2. Last-in First-out (LIFO): Items that came in last are sold first
3. Average method: Weighted average cost is applied as unit cost

Retail inventory method is
--> allowed in some situations

Subsequent measurement
If the market is lower than the cost
--> inventory is measured at the market
--> "Lower of Cost or Market" (LCM)

1. The market refers to current replacement cost
2. If net realizable value (NRV) is lower that current replacement cost
--> NRV is the market
3. If current replacement cost is lower than (1)
--> (1) is the market
(1) net realizable value - normal profit margin

Lower of Cost or Market (LCM) summary
(a) current replacement cost
(b) net realizable value
(c) net realizable value - normal profit margin

If (c) < (a) < (b) --> market = (a)
If (c) < (b) < (a) --> market = (b)
If (a) < (c) < (b) --> market = (c)

   Codification Topic 330
Subtopics of Codification Topic 330
   330-10 Overall   
Accounting Terms of Codification Topic 330-10
   Direct effects of a change in accounting principle
   Net realizable value   

   Other Topics at the Codification 300 
Accounting Standards Codification, ASC, Overview
ASC Codification Topic 305: Cash and Cash Equivalents
ASC Codification Topic 310: Receivables
ASC Codification Topic 320: Investments-Debt and Equity Securities
ASC Codification Topic 323: Investments-Equity Method and Joint Ventures
ASC Codification Topic 325: Investments-Other
ASC Codification Topic 330: Inventory
ASC Codification Topic 340: Other Assets and Deferred Costs
ASC Codification Topic 350: Intangibles-Goodwill and Other
ASC Codification Topic 360: Property, Plant, and Equipment

   U.S. GAAP Codification of Accounting Standards
Accounting Standards Codification, ASC, Overview
ASC Codification 200: Presentation
ASC Codification 300: Assets
ASC Codification 400: Liabilities
ASC Codification 500: Equity
ASC Codification 600: Revenue
ASC Codification 700: Expenses
ASC Codification 800: Broad Transactions
ASC Codification 900: Industry

U.S. GAAP by Topic
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