US GAAP vs IFRS - Inventories

READING 22 - INVENTORIES
	USGAAP	IFRS
Inventory Cost Flow Method	4 methods: ·    Specific Identification, ·    FIFO ·    W. Avg. Cost ·    LIFO	3 methods: ·    Specific Identification, ·    FIFO ·    W. Avg. Cost
Change in Inventory valuation method	·    Allowed only if it results in more reliable and relevant information. ·    Thorough Disclosure of why the new method is superior and preferable ·    If change is from LIFO to any other method then applied retrospectively ·    If change is to LIFO then prospectively applied	·    Allowed only if it results in more reliable and relevant information. ·    If change is justifiable then it is applied retrospectively
Inventory Valuation Rules	·    Measured at lower of Cost or Market ·    Market usually = replacement cost ·    NRV – Normal Profit < Market < NRV	·    Measured at lower of Cost or NRV ·    NRV = Est. Selling Price – Est. Selling & Completion Cost
Disclosure	·    Either on Balance sheet or Foot Notes carrying amount in classifications suitable to company must be disclosed ·    Company using LIFO method must disclose LIFO Reserves	·    Either on Balance sheet or Foot Notes carrying amount in classifications suitable to company must be disclosed