Inventory disclosure

Inventory disclosure should be shown in the financial statements or in a note to those financial statements:

1. the accounting policies adopted for measuring inventories, including the cost formula used
2. the inventory total, analysed into classifications appropriate to the enterprise
3. the amount of inventories included at net realisable value
4. the amount of any reversal of a writing down to net realisable value, and details of the circumstances leading to the reinstatement
5. when LIFO is used, the difference between the balance sheet value of the inventories and either: the value of the inventory if FIFO or weighted average methods had been used, or the current cost at the balance sheet date
6. cost of inventories recoginsed as an expense during the period, or the operating costs, applicable to revenues, recoginsed as an expense during the period, classified by their nature.

Related posts:

1. Inventory valuation methods
2. Average inventory cost
3. Inventory valuation methods: FIFO and LIFO
4. Net realisable value
5. Research and development costs disclosure