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FinREC proposes guidance on inventory valuation

Comments are sought on nonauthoritative guidance.

Please note: This item is from our archives and was published in 2019. It is provided for historical reference. The content may be out of date and links may no longer function.

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The AICPA Financial Reporting Executive Committee (FinREC) is seeking comments on a recently published working draft on inventory valuation.

The inventory valuation material ultimately will be included in an AICPA Accounting and Valuation Guide on business combinations. The inventory working draft provides nonauthoritative guidance and illustrations for estimating the fair value of inventory acquired in a business combination in accordance with FASB ASC Topic 820, Fair Value Measurement. This guidance is intended for preparers of financial statements, independent auditors, and valuation specialists.

The focus of the proposed guidance is on measuring fair value of inventory for financial reporting purposes.

The draft was prepared by the AICPA Business Combinations Task Force. Comments on the draft are due by email by Feb. 1 to Yelena Mishkevich at Yelena.Mishkevich@aicpa-cima.com.