FASB issued Statement no. 151 , Inventory Costs
(
www.fasb.org/st/index.shtml ), an amendment of Accounting
Research Bulletin (ARB) no. 43, chapter 4. The statement clarifies
that abnormal amounts of idle facility expense, freight and/or
handling costs and wasted materials (that is, spoilage) should be
recognized as current-period charges, and it requires the allocation
of fixed production overheads to inventory based on the normal
capacity of the production facilities. The guidance is effective for
inventory costs incurred during fiscal years beginning after June 15,
2005, but earlier application is permitted for costs incurred during
fiscal years beginning after November 23, 2004. The statement’s
provisions should be applied prospectively.
Breaking News
- News
- News Digest
Latest News
PODCAST
Most Read
SPONSORED REPORT
2019 State of Financial Reporting Survey
We surveyed nearly 600 finance and accounting professionals on their month-end close and reporting processes. See the results.
VIDEO
What RPA is and how it works
Robotic process automation is like an Excel macro that can work on multiple applications, says Danielle Supkis Cheek, CPA. RPA can complete routine, repetitive tasks such as data entry, freeing up employee time from lower-level chores.
From The Tax Adviser
From CPA Insider