Which one of the following inventory procedures cannot be applied for interim reporting?
A)estimation of inventory using gross profit method
B)delayed recognition of permanent losses from inventory market declines
C)delayed recognition of temporary inventory market declines
D)delayed recognition of temporary LIFO liquidations

Question

Quizplus · Accepted Answer

Delayed recognition of permanent losses from inventory market declines is not acceptable for interim reporting because accounting standards require that inventory write-downs to market value or to net realizable value, if lower than cost, must be recognized immediately when they occur. This ensures that the financial statements accurately reflect the current value of inventory and potential losses.

Which One of the Following Inventory Procedures Cannot Be Applied