Inventory accounting: IFRS® Standards vs US GAAP
The LIFO reserve reduces the reported inventory value, which in turn reduces the current ratio and the inventory turnover ratio. The current ratio measures a company’s ability to pay its short-term obligations, while the inventory turnover ratio measures how quickly a company sells its inventory. A lower current ratio and inventory turnover ratio can indicate […]
Inventory accounting: IFRS® Standards vs US GAAP Lire la suite »