lower of cost or market การใช้

• It prices items in its balance sheet at the lower of cost or market value.
• That's happened to Japan's big chemical companies and trading houses which use the so-called lower of cost or market accounting method.
• Conservatism plays an important role in a number of accounting rules, including the allowance for doubtful accounts and the lower of cost or market rule.
• The Tokyo Stock Exchange requires companies to value securities at the lower of cost or market price and disclose the amount when it exceeds a certain percentage of the preceeding year's results.
• Gifts of assets held for less than a year are deducted as the lower of cost or market value, so you should never give securities that have declined in value from their original cost.
• Where the market value of goods has declined for whatever reasons, the business may choose to value its inventory at the lower of cost or market value, also known as " net realizable value ".
• However, IRS regulations accepted this " lower of cost or market " method for tax purposes only if the taxpayer could demonstrate a reduced market price, or the goods were defective or " subnormal ".
• In most sets of accounting standards, such as the International Financial Reporting Standards, FIFO ( or LIFO ) valuation principles are " in-fine " subordinated to the higher principle of lower of cost or market valuation.
• For instance, financial assets may be recognised at either 1 ) acquisition or production cost, 2 ) fair value ( as allowed under the Law of 10 December 2010 which amended the 2002 Law ), 3 ) the lower of cost or market value, depending on financial statement line items.