November 19, 2018
Published: Journal of Accountancy
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.