LIFO And Why Investors Should Monitor Inventory Disclosures

The FASB is putting out a proposal in July 2014 for an accounting standards update for inventory accounting that would offer companies a ‘one-time’ adjustment to change in valuation methods, notes a recent report from Janney Capital Markets. Michael Gyure of Janney Capital Markets in a report dated September 4, 2014, notes all comparable store sales metrics are not created equally. Measurement of inventory to be simplified According to Gyure, the FASB (Financial Accounting Standards Board)’s July 2014 on inventory accounting has the avowed goal to simplify the measurement of inventory. The analyst notes the biggest change in the proposal…