Description
Inventory is an important line item in the Balance Sheet of many companies. Inventory management affects many departments in an organization—from production and sales to finance and operations.
In this Advanced Financial Reporting – Inventory course, we guide you through the key concepts in accounting and financial reporting for inventories.
You will learn about the four cost flow methods—FIFO, LIFO, Weighted Average Cost, and Specific Identification—and how to calculate various financial indicators under these assumptions. The Financial Reporting for Inventories course contains many practical examples and exercises showing you how to compare companies’ financial statements using different valuation methods.
Throughout the course, you will work on real-world case studies and projects that will help you apply your new skills in a practical setting. By the end of the course, you will have the necessary knowledge and skills to create accurate inventory valuations, prepare financial statements and analyze inventory performance.
We also discuss the concept of Net Realizable Value (NRV) and its implications in financial reporting. We conclude the course by exploring the necessary inventory disclosures and the importance of inventory ratios for financial analysis.
What You’ll Learn
In this Advanced Financial Reporting – Inventory course, we cover the following topics:
- Types of inventory costs
- Common cost flow assumptions—FIFO, LIFO, Weighted Average Cost, Specific Identification
- The effect of inflation and deflation on inventory costs
- Calculating COGS, gross profit, and closing inventory balance under different valuation methods
- The implications of valuing inventory at Net Realizable Value (NRV)
- Converting the financial statements of a company from LIFO to FIFO in Excel
