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Zeratul
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| Posted: 21 Jul 2010 at 15:17 | IP Logged
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LIFO is one of the exceptions, under SFAS 154 (I don't know which Topic that would correspond to in the Codification).
The reason why is because in many cases it would be far too costly to make the retroactive adjustments (and the use of such information to investors doesn't justify the cost). FIFO to weighted average would be a better example.
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now!now!now!
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Joined: 06 May 2010
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| Posted: 21 Jul 2010 at 15:56 | IP Logged
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Zeratul wrote:
LIFO is one of the exceptions, under SFAS 154 (I don't know which Topic that would correspond to in the Codification).The reason why is because in many cases it would be far too costly to make the retroactive adjustments (and the use of such information to investors doesn't justify the cost). FIFO to weighted average would be a better example.
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Thanks - that's what Becker says too.
Here's my own confusion - what is the difference between retrospective and retroactive treatment?
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graymoss27
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| Posted: 22 Jul 2010 at 05:56 | IP Logged
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so its a estimate when u got to decide which way to go but
within the priciples of accounting !!
got it ... thnx
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Topic: How to differentiate between A/c
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