AICPA issues inventory valuation guidance

BVWireIssue #194-3
November 28, 2018

business valuation standards & regulations
AICPA, fair value, fair value measurements, inventory

The AICPA’s Financial Reporting Executive Committee has issued an early working draft of Inventory Valuation guidance and would like feedback by Feb. 1, 2019. The draft is part of the upcoming Business Combinations Accounting and Valuation Guide on how to estimate the fair value of inventory acquired in a business combination in accordance with FASB ASC 820, Fair Value Measurement. The draft contains a section with general principles for valuing inventory and two examples, one on how to value finished goods and the other on work-in-process inventory. You’ll also see Q&As that illustrate some of the inventory valuation considerations discussed in the draft. Please submit comments to
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