Inventories and Construction Contracts

What is NIFO inventory valuation method?

NIFO - Next in, First out is an inventory valuation technique in which issues to the production hall are valued at the current market price i.e. current cost or replacement cost instead of the...

What are different inventory valuation methods?

There are numerous valuation techniques to value the inventory or stock. However, here is the short list of those which are known. To learn more about each method, click the name! Specific identification method FIFO -...

What is Specific identification method of inventory valuation?

Specific identification method is just another method to value ending inventory of the business to be reported in the financial statements. IAS 2 permits the use of specific identification method. According to this method each...

Why LIFO is not permissible under IFRS?

After the revision of IAS 2 Inventories in 2003, LIFO was explicitly prohibited to be used by the entities following International Accounting Standards to prepare and present financial statements. Before this revision LIFO was...

What is FISH inventory method?

FISH is the acronym for First-in, Still-here and is basically an alternative name for Last-in, First-out (LIFO) method. Usually authors and article writers come up with novel terms sometimes to make things even more understandable...

What is LISH inventory method?

LISH is the acronym for Last-in, Still-here and is basically just another name given to First-in, First-out (FIFO) method which is a well known inventory valuation method based on particular cost flow assumption. Different authors...

What is HIFO?

HIFO is an acronym for Highest in, First out. This inventory valuation method assumes that inventory with highest bought in value i.e. highest purchase price in the stock will be consumed first or in other...

How POSSESSION and CONTROL of an asset are different in financial acconuting?

Possession of an asset might mean just having a physical control of the asset. The party who holds the asset is the possessor of such asset. But the word control holds special meaning in the...