Financial Statements Prepared for Use in Other Countries 2205 the United States, the auditor may report using either (a) a U.S.-style reportmodiï¬ed to report on the accounting principles of another country (see para-graphs.09and.10)or(b)ifappropriate,thereportformoftheothercountry(seeparagraphs .11 and .12).
The cost method of investment accounting. The cost method of accounting is by far the most common approach for reporting investment gains and losses. That's true for retail investors and institutional investors alike. With this method, the actual cost of the investment is used as the baseline, with the profit or loss determined by the final sales price of the stock. For example, you buy a stock at $10, sell it at $15, netting a $5 profit.
Understand and apply the lower-of-cost-or-market rule used to value inventories. Estimate ending inventory and cost of goods sold using the gross profit method. Estimate ending inventory and cost of goods sold using the retail inventory method, applying the various cost flow methods. Explain how the retail inventory method can be made to approximate the lower-of-cost- or-market rule. Determine ending inventory using the dollar-value LIFO retail inventory method.