If a change is made in the inventory valuation method, no disclosure is necessary.

Inventory Valuation Method

The approach used to calculate the cost of inventory that a business has sold or currently holds, influencing financial reporting and tax calculations.

Disclosure

Disclosure refers to the process of making essential information known to the public or to specific parties, often as a requirement in financial and legal activities.

Identify the fundamentals of consistency and comprehensive disclosure in the assessment of inventory values.
Understand the importance of reporting alterations in methods used for valuing inventory.

Verified Answer

Bryant HernandezMay 07, 2024

Final Answer :

False

Explanation :

According to accounting principles, any change in the inventory valuation method must be disclosed in the financial statements to ensure transparency and consistency in financial reporting.

Learning Objectives

Identify the fundamentals of consistency and comprehensive disclosure in the assessment of inventory values.
Understand the importance of reporting alterations in methods used for valuing inventory.

If a change is made in the inventory valuation method, no disclosure is necessary.

Definitions

Learning Objectives

Learning Objectives

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