Page 22 - FINAL CFA I SLIDES JUNE 2019 DAY 8
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Session Unit 8:
28. Inventories
LOS 28.i: Describe the financial statement presentation of and disclosures relating to
inventories., p 193
Required inventory disclosures are similar under U.S. GAAP and IFRS and include:
• The cost flow method (LIFO, FIFO, etc.) used.
• Total carrying value of inventory, with carrying value by classification (raw materials,
work-in-process, and finished goods) if appropriate.
tanties
• Carrying value of inventories reported at fair value less selling costs.
• The cost of inventory recognized as an expense (COGS) during the period.
• Amount of inventory write-downs during the period.
• Reversals of inventory write-downs during the period, including a discussion of the
circumstances of reversal (IFRS only because U.S. GAAP does not allow reversals).
• Carrying value of inventories pledged as collateral.
If you change inventory cost flow method from say LIFO to FIFO,
you must apply restrospectively and explain why, p.194
