Proposed guidance published on inventory valuation

By Ken Tysiac

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

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 can be emailed by Feb. 1 to Yelena Mishkevich at Yelena.Mishkevich@aicpa-cima.com.

Ken Tysiac (Kenneth.Tysiac@aicpa-cima.com) is the JofA’s editorial director.

SPONSORED REPORT

A new line of business to consider

Technology assessments may open the door to new engagement opportunities for your firm. What is a technology assessment? How do you perform one? JofA Tech Q&A author J. Carlton Collins shows you in a detailed explanation.

FEATURE

Maximizing the higher education tax credits

A counterintuitive strategy can save taxes by including otherwise excludable scholarships in gross income.