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).
Retail Inventory Method. The retail inventory method is an accounting system to estimate the ending inventory and cost of goods sold. Essentially, its used to estimate the amount of ending inventory at cost.
This method is pretty straight-forward and very easy to use and implement in a low volume high cost per item retail format. COGS = Beginning Inventory + Purchases - Ending Inventory. Gross Margin. This is simply the difference between what an item cost and the price for which it sells. For example, if Store A and B have the same sales, yet Store A's gross margin is 50 percent and Store B's gross margin is 55 percent, it's easy to see which store is faring better.