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

2018 financial reporting survey: Challenges and trends

Learn the top reporting challenges that emerged in a survey of more than 800 finance, accounting, and compliance professionals across the world, and compare them with your organization's obstacles.

PODCAST

How the skill set for today’s CFO is changing

Scott Simmons, a search expert for large-company CFOs, gives advice for the next generation of finance leaders and more, including which universities are regularly producing future CEOs and CFOs.