Page 17 - FINAL CFA I SLIDES JUNE 2019 DAY 8
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LOS 28.i: Describe the financial statement
presentation of and disclosures relating to Session Unit 8:
inventories., p 193 28. Inventories
Similar under U.S. GAAP and IFRS, they include:
• The cost flow method (LIFO, FIFO, etc.) used.
• Total carrying value, carrying value by classification (raw materials, work-in-process, and
finished goods) if appropriate.
tanties
• 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, including circumstances of reversal (IFRS only
because U.S. GAAP does not allow reversals).
• Carrying value of inventories pledged as collateral.
Any change from say LIFO to FIFO, must apply retrospectively and explain why, p.194
