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What are the proper procedures for a change to the LIFO method of inventory valuation?

Answer:

Company should adjust its financial statements for each prior period presented.

Thus, financial statement info about prior periods will be on the same basis as the new accounting pricipal.

It adjusts the carrying amounts of assets and liabilites as of the beginning of the first year presented. It will reflect the cumulative effect on prior periods. Company should also adjust an opening balance of retained earnings or net assets as of the beginning of the first year presented.

First answer by ID1115687172. Last edit by ID1115687172. Question popularity: 1 [recommend question].

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