FIFO and LIFO accounting Essays

The choice of inventory accounting methods, specifically for the case of FIFO and LIFO, has developed into a decision, which includes varying consequences and comes with specific implications and benefits, such as communicating private information with FIFO (Hughes, and Schwartz, 1988, p.42) or tax benefits for the choice of LIFO (Morse and Richardson, 1983, p.125). Every firm and manager has to face the decision of which accounting method to choose, and has to include several aspects into their

I have chosen Nobes because there are more related articles and essays can be searched from the web, also the international accounting differences across the countries in accounting treatment is controversial issue nowadays. Differences reporting standard in accounting treatment across the countries can result in significantly different amounts being reported on the balance sheet and income statement. These differences will have impacts on cross country merger or acquisition and cross-border company

Concepts: 1.CVS and Walgreens have opposite inventory methods that are used in their day to day sales. CVS used the First-In-First-Out (FIFO) method for their inventory. In this method the earliest goods purchased are the ones that sell first. For inventory recording CVS would use the price of the most recent purchase of products to determine their inventory value. Following this the ending inventory is subtracted from this to get a cost of goods sold. For recording purposes this is one of the better

Difference between GAAP and IFRS The GAAP and the IFRS are the two accounting standards that are used by businesses. The IFRS is used in over 120 countries, especially countries in the European Union while the GAAP is used primarily in the United States. Although the two standards serve the same purpose, there are some differences in the way they operate. The most outstanding difference between the two is that while the GAAP is based on rules, the IFRS is based on principles. Unlike a rule based

from General Accepted Accounting Principles (GAAP) to the International Financial Reporting Standards they will first have to follow the IFRS 1, which is the First Time Adoption of International Financial Reporting Standards. The IFRS 1 is the structure pertinent to those implementing IFRS for the first time (Gornik-Tomaszewski & Sellhorn, 2010). In order to transition from GAAP to IFRS companies need to undertake three steps. Those steps include 1) Selecting an accounting practice that is in compliance

estimates that approximately 95% of their inventories in 2015 were valued using the LIFO method. Cost for the remainder of their inventories, including almost all fuel inventories, was determined using the First in First Out (FIFO) method. Kroger utilizes the Item Cost Method to determine its inventory cost before the LIFO adjustment for their store inventories. The reason Kroger employs the item-cost method of accounting is that it allows Kroger a more accurate reporting strategy for periodic inventory

GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (G.A.A.P) GAAP is an international convention of good accounting practices. It is based on the following core principles. In certain instances particular types of accountants that deviate from these principles can be held liable. The Business Entity Concept:- The business entity concept provides that the accounting for a business or organization be kept separate from the personal affairs of its owner, or from any other business or organization. This means

Financial Accounting is a field of accounting concerned with a company’s financial transactions. It uses standardized accounting guidelines to record, summarize and present the transactions to mainly external users periodically by means of Financial Statements. Creditors and other lenders like banks and other financial institutions, Government Authorities, Prospective Investors, Customers, Competitors and Regulatory Authorities are some of the External Users who may use these Accounting information

inventory cost is determined using the First-in, First-out method (FIFO).In which the oldest cost is matched against revenue and assigned to cost of gods sold. Delta Airlines inventory is tracked with jet fuel, refined oil product and refinery, the company owns a refinery acquired on June 2012. Spare parts also account

and the type of products and services they provide. Each of these companies, (General Motors Company, Target Corporation and Werner Enterprises, Inc.) officers a different type of product or service and manages inventory, if any, using different accounting methods. General Motors Company is a car manufacturer that designs, builds, and sells various vehicle models as well as vehicle parts and financial services available to customers during and after a vehicle is purchase (10-K Report, Page 1-5). On

CONSOLIDATED STATEMENT OF EARNINGS (INCOME STATEMENT) The Home Depot, Inc. Income Statement can be found on the SEC 10-K Annual Report on page 33, where it reflects the financial results of how the company operating activity faired in the 52-53 week / fiscal period ending January 29,2017, for 2016, in generating revenue. Per The Home Depot Subsidiaries Consolidated Statement of Earnings (Income Statement) of 2016 fiscal year, the net sales of $94,595 (amount in USD millions). The net sales final

1.0 Introduction Enterprise resource planning is a business software to aid companies in running their business doings smoothly; making minimal errors. With the world evolving into a technological era, there have been many changes in the business world (Summer, n.d). Computers are now no longer in the ‘want’ category but the ‘need’ category due to its efficiency (Polizzi, Murphy and Norris, 2001). Big corporations have been trying to instigate enterprise resource planning when carrying out tasks