What cost flow assumption does samsung apply

Assignment Help Accounting Basics
Reference no: EM131533358

Question: Samsung Electronics reports the following regarding its accounting for inventories.

Inventories are stated at the lower of cost or net realizable value. Cost is determined using the average cost method, except for materials-in-transit which are stated at actual cost as determined using the specific identification method. Losses on valuation of inventories and losses on inventory obsolescence are recorded as part of cost of sales. As of December 31, 2008, losses on valuation of inventories amounted to W---- 651,296 million ( W---- is Korean won).

1. What cost flow assumption(s) does Samsung apply in assigning costs to its inventories?

2. What has Samsung recorded for 2008 as a write-down on valuation of its inventories?

3. If at year-end 2009 there was an increase in the value of its inventories such that there was a reversal of W900 million for the 2008 write-down, how would Samsung account for this under IFRS? Would Samsung's accounting be different for this reversal if it reported under U.S. GAAP? Explain.

Reference no: EM131533358

Questions Cloud

Why effective money management : Explain why effective money management is important to college students. What University of Phoenix resources exist to help in this area?
The engaging and assessing a client phase to the work phase : What skills are necessary for a counselor to have in order to transition from the engaging and assessing a client phase to the work phase.
Percent of the customers entering : The owner reports 20 percent of the customers entering the store will make a purchase of $50. Suppose 15 customers enter the store before 10 A.M.
Describe federal laws that have help form security practices : How have security services changed since the 9/11 terrorist attacks? Describe federal laws that have helped form security practices.
What cost flow assumption does samsung apply : Inventories are stated at the lower of cost or net realizable value. Cost is determined using the average cost method, except for materials-in-transit.
Smokers than nonsmokers got lung cancer : Fifty years from now, you will analyze whether more smokers than nonsmokers got lung cancer. Is this an experiment or an observational study?
Estimate cost of inventory at the end of the first quarter : On March 1, KB Shop had $450,000 of inventory at cost. In the first quarter of the year, it purchased $1,590,000 of merchandise, returned $23,100.
The present value of the interest tax shields. : Your firm currently has $108 million in debt outstanding with a 6% interest rate. The present value of the interest tax shields is
Analyze the major professional roles played by nurses : Analyze the major professional roles played by physicians and nurses as they apply to physicians' conduct in the medical arena

Reviews

Write a Review

Accounting Basics Questions & Answers

  Minist company sells a single product at a selling price

minist company sells a single product at a selling price of 15.00 per unit. last year the companys sales revenue was

  Describe three business risks or threats that might threaten

Explain three business risks or threats that might threaten Whole Foods ability to accomplish their financial goals for the next 3 years. Use examples and references to support your response.

  Making summary entries using installment-sales method

Sawyer Furniture Company concluded its first year of operations in which it made sales of $800,000, all on installment. Collections during the year from down payments and installments totaled $300,000. Purchases for the year totaled $400,000; the ..

  Estimate the total discounted cash flow value of hot tissue

Hot Tissue Corp., a young, biotechnology firm, is considering an initial public offering of common stock. What do you estimate the total discounted cash flow value of Hot Tissue to be

  Which of the given accounts are temporary accounts

Buyers negotiate purchase contracts with suppliers. What type of shipping terms should a buyer attempt to negotiate to minimize freight-in costs?

  Abc corporation is authorized to issue 50000 shares of 50

abc corporation is authorized to issue 50000 shares of 50 par value preferred stock and 750000 shares of 5 par value

  The payback method of evaluating an investment fails to

answer the following truefalse questions1. investment center managers are evaluated on their use of center assets to

  The december 31 2011 year-end inventory balance of the

the december 31 2011 year-end inventory balance of the raymond corporation is 210000. you have been asked to review the

  Disadvantages of using in-band network management

What are some advantages and disadvantages of using in-band network management versus out-of-band network management?

  Discuss the role of an accountant in a business organization

Discuss the role of an accountant in a business organization

  Evidence of research

Effectiveness of communication - i.e.readability, legibility, grammar, spelling, neatness, completeness and presentation will be a minimum threshold requirement for all written work submitted for assessment.

  Who might suffer in the short term if you go along with your

Who might suffer in the short term if you go along with your supervisor's request? What might happen in the future if you go along with her request this time? If you do not go along, who might suffer in the short term and what could be the long-term ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd