Академический Документы
Профессиональный Документы
Культура Документы
1. Occurence
2. Rights
3. Obligation
4. Completeness
5. Accuracy
6. Cut-Off
7. Allocation
8. Valuation
9. Existence
*physical count, test count, test cut-off procedures, trace test counts, analytical procedures
Inventory Classifications:
1. Held for sale in the ordinary course of business; (Finished Goods Inventory)
3. In the form of materials or supplies to be consumed in the production process or in the rendering of
services. (Raw Materials, Office Supplies, etc.)
Initial Valuation:
*at Cost
Subsequent Valuation:
1. NRV of Finished Goods/Merchandise Inventory = Est. Selling Price less Est. Cost to Sell
2. NRV of WIP Inventory = Est. Selling Price less Est. Cost to Complete less Est. Cost to Sell
3. NRV of Raw Materials and Supplies = Current Replacement Cost or Current Purchase Price
Freight Terms:
3. Freight collect: freight=was paid by buyer (not necessarily shouldered by the buyer)
6. CIF (cost, insurance, freight): "Free until loading to the ship ONLY"
Inventory Systems:
1. Periodic: physical count at year end to determine COS and Inventory, End; inventory balance updated
at year-end
2. Perpetual: flow of goods is recorded every transaction; inventory balance always updated
List Price =is not the intended selling price of the seller
(Trade discounts) =are not recorded by the buyer or seller. Its deduction from the list price
4. Sale with right of return: inventor of seller unless right of return is considered normal in the industry
(e.g. retail) or time for right of return has already lapsed
6. Segregated goods: mere segregation of goods does not exclude the same from the seller's inventory
unless identified that sale is covered by a special sale agreement (BILL AND HOLD) as in when goods
were already billed and awaiting the pick-up of the customer
Inventory Valuation:
1. Specific Identification Method (SIM) - specific costs are attributed to identified items of inventory.
2. First-in, first-out (FIFO) - assume that items purchased first are sold first, and consequently, items at
the end of the period are those most recently purchased or produced.
3. Weighted Average Cost - cost of each item is determined from the weighted average of the cost of
similar items at the beginning of a period and the cost of similar items purchased or produced during the
period