Discuss with your colleagues the cost flow assumptions presented in these statements. Why did the company choose these assumptions? What types of inventories did they report?
Locate the annual financial report you selected in Week 1. Look at the balance sheet and the notes to the financial statements (particularly Note 1).
Post at least 200 words addressing the following points:
What cost flow assumption did the report use? Why do you think the company selected this cost flow assumption?
How many different types of inventories did the company report on its balance sheet? Identify those inventory categories.
Would the company be required to account for its inventories differently if it were reporting under IFRS? Why or why not?