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.
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.