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Inventory valuation method changes and share prices

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Inventory Valuation Method Changes and Share Prices. Voluntary accounting policy changes are said to be "unintended signals" about the financial health and future prospects of a firm from management to a firm's shareholders. Discuss how and why you would expect the capital markets to react to news that a company was voluntarily changing its inventory valuation policy from (a) LIFO to FIFO and from (b) FIFO to LIFO.

Reference no: EM133272908

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