Group Five GAAP VS. IFRS
US GAAP Codification Determination of Inventory Costs 330-10-30-9: Cost for inventory purposes may be determined under any one of several assumptions as to the flow of cost factors, such as first-in first-out (FIFO), average, and last-in first-out (LIFO). The major objective in selecting a method should be to choose the one which, under the circumstances, most clearly reflects periodic income.
May an entity elect LIFO method for inventory cost?
IAS 2 Inventories Cost formula 25 The cost of inventories, other than those dealt with in paragraph 23, shall be assigned by using the first-in, first-out (FIFO) or weighted average cost formula. An entity shall use the same cost formula for all inventories having a similar nature and use to the entity. For inventories with a different nature or use, different cost formulas may be justified. Prohibition of LIFO as a cost formula IN13 The Standard does not permit the use of the lastin, first-out (LIFO) formula to measure the cost of inventories.
Xi Zhen-Inventory cost Qian Teng-Basic EPS Zihui Yuan-Diluted EPS
Which amounts on the I/S must present basic &diluted EPS?
Similarities: Both require presentation of basic and diluted EPS for income from continuing operation either on the face of the income statement or in the notes disclosure. Differences: US GAAP Relevant guidance Extraordinary items ASC260 Include IFRS IAS33 Prohibited Shares are calculated in incremental basis •
• Basic EPS =
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