Analysis of Inventories
Free CFA Level I lesson in Financial Statement Analysis. 13 min read, ~2,015 words.
IFRS = lower of cost and NRV (reversals allowed). US GAAP = lower of cost and NRV for FIFO/WA, lower of cost or market for LIFO (no reversals). Rising prices + FIFO = highest ending inventory, lowest COGS, highest gross margin, highest taxes. Rising prices + LIFO = lowest ending...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- analysis of inventories
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