中外比较会计ch6解读课件

1、中外比较会计ch6解读中外比较会计ch6解读Vocabularymerchandise inventory 商品存货beginning inventory 期初存货ending inventory 期末存货physical count 实地盘存 consignment 寄销goods in transit 在途存货installment sales 分期收款销售Vocabularymerchandise inventor1. Whats InventoryGoods held for sale in the normal course of business and, in the case

2、of a manufacturer , goods in the process of production or to be placed in production.Merchandising firm :merchandise inventoryManufacturing firm :raw material ,work in process,finished goods1. Whats InventoryGoods heWhats included in Inventory costP260/155Inventory cost is the sum of all the costs i

3、ncurred to bring inventories into condition and location for sale or for use.Whats included in Inventory cDetermination of Inventory CostsPrice paid or consideration givenFreight-in 运入运费ReceivingUnpacking Inspecting Storage InsuranceSales and other applicable taxesDetermination of Inventory CosPurch

4、ases+Freight-in-Purchases Returns and Allowances-Purchases Discounts Taken=Net PurchasesComputation of Net PurchasesPurchasesComputation of Net PInventory costing methods P164/159Specific unit cost (specific identification):Cost inventory at specific unit cost of the particular unitWeighted-average

5、cost (average-cost method)First-in, first-out (FIFO) cost: The first costs into inventory are the first costs out to goods sold. Last-in, first-out (LIFO) cost: The last costs into inventory are the first costs out to goods sold.Inventory costing methods P164Income effects of Inventory costing metho

6、ds P266/161Income effects of Inventory coA comparison of inventory methods (P267/162)LIFO best matches the current value of cost of goods sold (P267/162)And during periods of high inflation(通货膨胀）, income tax is lowest under LIFO. (P267/162)But it allows managers to manage reported income up or down

7、(P268/163)LIFO liquidation: inventory quantities fall below the level of the previous period under LIFO. A comparison of inventory methFIFO reports the most current inventory costs on the balance sheet. (P267/162)And during periods of inflation(通货膨胀）, FIFO is sometimes criticized because it overstat

8、es income. (P267/162)FIFO remains the most popular inventory method in the United States. (P267/162)FIFO reports the most current International perspective (P268/163)Virtually all countries permit FIFO and the weighted-average cost method.International perspective (P26LIFO used by country (P268/163)

9、Country LIFO Permitted? Country LIFO Permitted?Australia No Netherlands YesBrazil Yes Nigeria NOCanada Yes Singapore NOFrance Yes South Africa YesGermany Yes Sweden NOHK NO Switzerland NOJapan Yes U K NOLIFO used by country (P268/163成本与市价孰低法Lower-of-Cost-or-Market (LCM) (P272/167)成本与市价孰低法Lower-of-Co

10、st-or-MarkeInventory errors (P273/168)All inventory errors affect one or more of the following:beginning inventory, purchases,ending inventory, cost of goods sold, net income, retained earningsErrors in accounting for inventory can affect both income statement and balance sheet.Inventory errors (P27

11、3/168)AllEthical issues in inventory accounting (P274/169)Two ways to “cook the book”1.Overstate ending inventory2.Creating fictitious sales to boost their reported profits (detecting: unrealistic amount of sales return?)Ethical issues in inventory acBeginning inventory+Purchases (net)-Goods Sold=En

12、ding InventoryComparison of Inventory Accounting Systems (P276/171)Perpetual Inventory SystemBeginning inventory+Purchases (net)-Ending Inventory=Goods SoldPeriodicInventory SystemBeginning inventoryComparisonGross profit (gross margin 毛利法) method in estimating ending inventory (P280/175) Used by:1.insurance company when inventory are destroyed2. Account