Wireless Network Advantages and Disadvantages

Wireless Network Advantages and Disadvantages Advantages There are many advantages associated with installing a wireless network compared to a wired network such as mobility, cost-effectiveness and adaptability. Wireless Networking is relatively cheaper than wired Networks since they require no cables between the computers as well as lower long term costs due to less maintenance since there is less equipment. The reduction of cables also reduces the trip hazard caused by cables running along the floor in most homes. Most wireless network equipment is plug-and-play, which helps reduce the total cost such as vendor installation and eliminates redundancy is case of a system crash. Wireless Networking is also very mobile and versatile; it is adaptable to most situations and requirements. Wireless networks can easily be set up and dissembled, which is perfect for many people who are on temporary worksites/homes or leased space. It can also provide networking in places where regular wire cannot reach such as the backyard in a home situation. Access points can be used to boost the wireless signal range if required. Since portable workstations such as laptops have become popular, wireless networks can provide quick and easy access to the internet and workspaces for students and teachers in universities etc. It is also extremely easy to add other components onto this type of network such as easy installation of VoIP and printers etc without the need to configure ones computer. Disadvantages Since wireless networking is a relatively new and contingent form of networking, it is filled with it own hazards and problems such as unreliability and security. Wireless networks have limited bandwidth, hence they cannot support Video Teleconferencing(VTC). It is also limited in its expandability due to the lack of available wireless spectrum for it to occupy. Wireless Network can also be a security risk if not installed and maintained properly. Wireless networks don„ ¢t require any physical components to connect up to it such as wires, only a wireless adapter is required which significantly increases the accessibility of the network to potential hackers. This scenario is worsened if the network doesn„ ¢t contain a password since it can then be accessed by anyone with ease. Wireless networks also have an increased chance of jamming and interference due to external factors such as fog and dust storms or when a flying object such as an aeroplane passes over the field. When too many people in the same area use wireless networks, the band of air that they transmit signals on can become overloaded. Wired networks Advantages Wired networks have existed for a long times, therefore have developed exponentially over the recent years. Improvements have been made in the fields of speed, security and reliability. Wired networks offer the fastest transfer speed of all the networks. Gigabit Ethernet is currently the best choice for wired networks and provides speeds of up to one gigabit per second. This is almost three times faster than the best wireless connection available and almost ninety times faster than a regular connection. Wired networks consist of physical, fixed connects which are not prone to interference and fluctuations in available bandwidth caused by factors such as walls. Features such as shielding(adding an aluminium foil around the wires) and twisting at different strengths help reduce interference. Wired networks also have a better security system than wireless networks. The network itself is harder to connect to since it has to be physically connected to through wires which can become a hassle when trying to hack into it. It cannot be accessed from anywhere since the signals are not broadcasted. Disadvantages Wired networks mainly suffer the inverse of the advantages of a wireless network system such as lack of mobility and greater cost. Wireless network require greater resources such as cabling, switch/hub and network cards to install and to maintain therefore the initial and long term costs are much higher. It can also be a large loss when it has to be disassembled and reinstalled since they wiring has to be completely overhauled and is normally unusable after because of damage. Wired networks can also be a hassle to install new components into because of all the hardware required to do this. Cables and network cards are required to install new computers to the system and wires need to be drawn from the switch to the computers. The wiring can become messy and indistinguishable very quickly and can become a potential safety hazard due to the risk of triping. Wired Network Components Switch The network switch is a computer networking device that connects network segments, it connects the various parts of the network together like a convergence device. The network switch commonly refers to a network bridge that processes and routes data at the Data link layer (layer 2) of the OSI model. Switches that also process data at the Network layer are technically referred to as Multilayer switches. Network card A network interface card, network adapter, network interface controller (NIC), network interface card, or LAN adapter is a computer hardware component designed to allow computers to communicate over a computer network. It is both an OSI layer 1 (physical layer) and layer 2 (data link layer) device, as it provides physical access to a networking medium and provides a low-level addressing system through the use of MAC addresses. It allows users to connect to each other either by using cables or wirelessly Cabling: There are many types of cabling available but the two common groups are the copper cables and the fibre optic cables. There are two main types of copper cables, twisted pairs and coaxial cable. Twisted pairs are two insulated wires twisted around each other to for a twisted pair. This leads to a better electrical performance and a slightly higher bit rate than untwisted pairs. The twisting helps reduce interference by twisting at different tightness„ ¢ and by also adding in a layer of aluminium around it(shielded). They have become the most common form of transmission media cable today. Coaxial cables are two-wire conductors with a larger bandwidth than the twisted pair cables. The inner cable is heavily insulated so it is safe from bending and crushing and separated from the braided outer conductor. This outer cable is in turn insulated. The resultant electrical field occurs outside the coaxial cable, thus reducing the level of noise making the medium suitable for conducting high bit rates over longer distances than twisted pairs. Fibre Optics Fibre optic cables work through total internal reflection where a beam of light is passed through a hollow glass tube. There are two methods of transfer for this media, single mode and multi mode. Single mode optical fibre„ ¢s only carry a single ray of light that can vary in wavelength. The ray travels parallel to the length of the fibre and is often called the transverse mode since its electromagnetic vibrations occur perpendicular (transverse) to the length of the fiber. Multi mode is mostly used for communication over short distances. It utilizes multiple rays of light travelling through the same tube at the same time. Typical multimode links have data rates of 10 Megabit/s to 10 Gigabit/s over link lengths of up to 600 meters. Wireless Network Components Wireless Modem/Router A wireless router is a network device that performs the functions of a router but also includes the functions of a wireless access point. It is commonly used to allow access to the Internet or a computer network without the need for a cabled connection. It can function in a wired LAN (local area network), a wireless only LAN or a mixed wired/wireless network. A modem router also allows access to the internet for the whole network. Wireless Network Adapter A wireless network adapter allows a computing device to join a wireless LAN. Wireless network adapters contain a built-in radio transmitter and receiver. There are many three main types of adapters, traditional PCI wireless adapters are add-in cards designed for installation inside a desktop computer having a PCI bus. USB wireless adapters connect to the external USB port of a computer. Finally, so-called PC Card or PCMCIA wireless adapters insert into a narrow open bay on a notebook computer. Security Authentication Authentications are security measures designed to establish the validity of a transmission, message, or originator, or a means of verifying an individuals authorization to receive specific categories of information. E.g. Passwords. Firewall Firewalls can be implemented in either hardware or software, or a combination of both. Firewalls are frequently used to prevent unauthorized Internet users from accessing private networks connected to the Internet, especially intranets. All messages entering or leaving the intranet pass through the firewall, which examines each message and blocks those that do not meet the specified security criteria. Types of firewalls include packet filters, proxy servers, Application gateways and circuit level gateways. Encryption Encryption is the conversion of data into a form, called a cipher text that cannot be easily understood by unauthorized people. Decryption is the process of converting encrypted data back into its original form, so it can be understood. There are three types of encryption, manual, transparent and semi-transparent. Proposal: The most suitable network for this situation is a mixture of both wired and wireless networks. Offices two, three and four should be connected through physical wired connections to ensure maximum speed and reliability and the fastest possible connection with the server without creating a more permanent layout e.g. burying the wires. Fast Ethernet cabling will be used since extreme transfer speeds are not required for this situation. Office one should be connected to wireless which eradicates the need for cables. Since there is only one computer connected wirelessly the bandwidth is not shared allowing for ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€¹Ã…“faster„ ¢ connection speed. There is also the added bonus of being able to connect laptops etc, which are becoming increasingly popular, to the network with ease. The switch and the router will be placed in office three along with the server since it will be the computer that is most frequently accessed, reducing the distance between it and t he switch should increase performance. The router/modem will be connected to an internet access point to allow for internet connection. Bibliography Advantages and Disadvantages of Wireless Networks http://faculty.ed.umuc.edu/~meinkej/inss690/khayat.pdf (accessed 10/9/10) www.netgear.co.uk/home_newnetwork_wiredwireless.php (accessed 8/09/10) Advantages and Disadvantages of Wired Networks http://www.see.ed.ac.uk/~dil/thesis_mosaic/subsection2_7_2_2.html (accessed 10/9/10) www.web-articles.info//Advantages-of-Wired-Networks-over-Wireless-Networks/ (accessed on the 8/9/10) Network Components http://en.wikipedia.org/wiki/Network_adapter (Accessed 10/09/10) http://www.teach-ict.com/as_a2/topics/networks/network%20components/network_components/index.htm (accessed 08/09/10)

Never Leave Your Past Behind Essay -- Essays Papers

Never Leave Your Past Behind I grew up in a low-income, single-parent family on the far south-side of Chicago. My sister and her family also lived with us. They needed a place to stay while they looked for a more affordable house. One thing my family doesn't do is turn our backs on each other. Sociologists who claim to be experts on non-white families have their own words for this type of situation. They derogatorily label this as a poverty-stricken, Black matriarchal extended family who lives in the ghetto. Yet all in all, we were happy because we helped each other. We were not the type of family who wondered what the next meal would be. We always knew we would have food on the table, but the type of food was a different story. Plain and simple, our goal was to survive. Survival to us was to get a job and hopefully wake up the next morning. I didn't think about college. Why should I? I didn't even like high school. But, somehow, somewhere an idea was instilled in me. "To be 'somebody,' I must go to college; if I didn't go, I would be a nobody." Because I believed this, I became more distant from my family and friends. I felt ashamed of my family because no one went to college right out of high school except for me. I felt my friends were not worthy of my time because I was in college and they were not. My biggest mistake in life was when I tried to leave my past behind me. It took me nineteen long, painful years to believe and learn never to be ashamed of who I am or where I came from. Since I lived in an area where there were only Blacks, I wanted to get away from them. I didn't want to witness another murder in front of my house. I couldn't tolerate another ten-to-twenty year old drug seller stopping me and asking, "... ... love myself and to love my family. After I knew my family supported me in whatever I did or said, my life began. Mentally, I grew stronger. I no longer felt ashamed of my family or friends. Most of all, I no longer was ashamed of being Black. In fact, I love myself because I am Black. I feel empowered because of what I have seen and experienced. I am proud because I am the first one in my family to attend college. I am happy because the people I love have helped me the best way they knew how. The only thing I needed to do was to love myself for who I am and where I came from. In order to do that, as my favorite high school teacher said, "You have to know where you came from before you know where you're going. And, you can't do that by acting like someone else." After all these years, I am proud to announce that I am a Black woman who knows where she's going.

Asc 330-10

October 13, 2011 330 Inventory 10 Overall 330-10-00 Status Note: General Note The Status Section identifies changes to this Subtopic resulting from Accounting Standards Updates. The Section provides references to the affected Codification content and links to the related Accounting Standards Updates. Nonsubstantive changes for items such as editorial, link and similar corrections are included separately in Maintenance Updates. General 330-10-00-1 330- 10-00No updates have been made to this subtopic. 330-10-05 Overview and BackgroundNote: General Note The Overview and Background Section provides overview and background material for the guidance contained in the Subtopic. It does not provide the historical background or due process. It may contain certain material that users generally consider useful to understand the typical situations addressed by the standards. The Section does not summarize the accounting and reporting requirements. General 330-10-05330-10-05-1 The Inventory Topic addresses the accounting principles and reporting practices applicable to inventory. 30-10-05330-10-05-2 An inventory has financial significance because revenues may be obtained from its sale, or from the sale of the goods or services in the production of which it is used. Normally such revenues arise in a continuous repetitive process or cycle of operations in which goods are acquired, created, and sold, and further goods are acquired for additional sales. 330-10-05330-10-05-3 Thus, the inventory at any given date is the balance of costs applicable to goods on hand remaining after the matching of absorbed costs with concurrent revenues.This balance is appropriately carried to future periods provided it does not exceed an amount properly chargeable against the revenues expected to be obtained from ultimate disposition of the goods carried forward. In practice, this balance is determined by the process of pricing the articles included in the inventory. 330-10-10 Objectives Note: Gene ral Note The Objectives Section provides the high-level objectives that the Subtopic is intended to accomplish or attain. The Section does not summarize or discuss the main principles of accounting and reporting requirements.General 330-10-10330-10-10-1 A major objective of accounting for inventories is the proper determination of income through the process of matching appropriate costs against revenues. 330-10-15 Scope and Scope Exceptions Note: General Note The Scope and Scope Exceptions Section outlines the items (for example, the entities, transactions, instruments, or events) to which the guidance in the Subtopic does or does not apply. In some cases, the Section may contain definitional or other text to frame the scope. General > Overall GuidanceThe Scope Section of the Overall Subtopic establishes the pervasive scope for the Inventory Topic. 330-10-15330-10-15-1 > Entities The guidance in the Inventory Topic applies to all entities, with the following qualifications. Th e guidance in this Topic is not necessarily applicable to the following entities: 330-10-15330-10-15-2 330-10-15330-10-15-3 a. Not-for-profit entities (NFPs) b. Regulated utilities. 330-10-20 Glossary Note: General Note The Master Glossary contains all terms identified as glossary terms throughout the Codification.Clicking on any term in the Master Glossary will display where the term is used. The Master Glossary may contain identical terms with different definitions, some of which may not be appropriate for a particular Subtopic. For any particular Subtopic, users should only use the glossary terms included in the particular Subtopic Glossary Section (Section 20). Direct Effects of a Change in Accounting Principle Those recognized changes in assets or liabilities necessary to effect a change in accounting principle. An example of a irect effect is an adjustment to an inventory balance to effect a change in inventory valuation method. Related changes, such as an effect on deferred i ncome tax assets or liabilities or an impairment adjustment resulting from applying the lower-of-cost-or-market test to the adjusted inventory balance, also are examples of direct effects of a change in accounting principle. Inventory The aggregate of those items of tangible personal property that have any of the following characteristics: a. Held for sale in the ordinary course of business b.In process of production for such sale c. To be currently consumed in the production of goods or services to be available for sale. The term inventory embraces goods awaiting sale (the merchandise of a trading concern and the finished goods of a manufacturer), goods in the course of production (work in process), and goods to be consumed directly or indirectly in production (raw materials and supplies). This definition of inventories excludes long-term assets subject to depreciation accounting, or goods which, when put into use, will be so classified.The fact that a depreciable asset is retired from regular use and held for sale does not indicate that the item should be classified as part of the inventory. Raw materials and supplies purchased for production may be used or consumed for the construction of long-term assets or other purposes not related to production, but the fact that inventory items representing a small portion of the total may not be absorbed ultimately in the production process does not require separate classification.By trade practice, operating materials and supplies of certain types of entities such as oil producers are usually treated as inventory. Market As used in the phrase lower of cost or market, the term market means current replacement cost (by purchase or by reproduction, as the case may be) provided that it meets both of the following conditions: a. Market shall not exceed the net realizable value b. Market shall not be less than net realizable value reduced by an allowance for an approximately normal profit margin.Net Realizable Value Estima ted selling price in the ordinary course of business less reasonably predictable costs of completion and disposal. 330-10-30 Initial Measurement Note: General Note The Initial Measurement Section provides guidance on the criteria and amounts used to measure a particular item at the date of initial recognition. General > Cost Basis 330-10-30330-10-30-1 The primary basis of accounting for inventories is cost, which has been defined generally as the price paid or consideration given to acquire an asset.As applied to inventories, cost means in principle the sum of the applicable expenditures and charges directly or indirectly incurred in bringing an article to its existing condition and location. It is understood to mean acquisition and production cost, and its determination involves many considerations. 330-10-30330-10-30-2 Although principles for the determination of inventory costs may be easily stated, their application, particularly to such inventory items as work in process and finished goods, is difficult because of the variety of considerations in the allocation of costs and charges. 30-10-30330-10-30-3 For example, variable production overheads are allocated to each unit of production on the basis of the actual use of the production facilities. However, the allocation of fixed production overheads to the costs of conversion is based on the normal capacity of the production facilities. Normal capacity refers to a range of production levels. Normal capacity is the production expected to be achieved over a number of periods or seasons under normal circumstances, taking into account the loss of capacity resulting from planned maintenance.Some variation in production levels from period to period is expected and establishes the range of normal capacity. 330-10-30330-10-30-4 The range of normal capacity will vary based on business- and industry-specific factors. Judgment is required to determine when a production level is abnormally low (that is, outside the range of expected variation in production). 330-10-30330-10-30-5 Examples of factors that might be anticipated to cause an abnormally low production level include significantly reduced demand, labor and materials shortages, and unplanned facility or equipment downtime. 30-10-30330-10-30-6 The actual level of production may be used if it approximates normal capacity. In periods of abnormally high production, the amount of fixed overhead allocated to each unit of production shall be decreased so that inventories are not measured above cost. The amount of fixed overhead allocated to each unit of production shall not be increased as a consequence of abnormally low production or idle plant. 330-10-30330-10-30-7 Unallocated overheads shall be recognized as an expense in the period in which they are incurred.Other items such as abnormal freight, handling costs, and amounts of wasted materials (spoilage) require treatment as current period charges rather than as a portion of the inventory c ost. 330-10-30330-10-30-8 Also, under most circumstances, general and administrative expenses shall be included as period charges, except for the portion of such expenses that may be clearly related to production and thus constitute a part of inventory costs (product charges). Selling expenses constitute no part of inventory costs. The exclusion of all overheads from inventory costs does not constitute an accepted accounting procedure.The exercise of judgment in an individual situation involves a consideration of the adequacy of the procedures of the cost accounting system in use, the soundness of the principles thereof, and their consistent application. General and administrative expenses ordinarily shall be charged to expense as incurred but may be accounted for as contract costs under the completed-contract method of accounting or, in some circumstances, as indirect contract costs by government contractors. > Determination of Inventory Costs 30-10-30330-10-30-9 Cost for invent ory purposes may be determined under any one of several assumptions as to the flow of cost factors, such as first-in first-out (FIFO), average, and last-in first-out (LIFO). The major objective in selecting a method should be to choose the one which, under the circumstances, most clearly reflects periodic income. 330-10-30330-10-30-10 The cost to be matched against revenue from a sale may not be the identified cost of the specific item which is sold, especially in cases in which similar goods are purchased at different times and at different prices.While in some lines of business specific lots are clearly identified from the time of purchase through the time of sale and are costed on this basis, ordinarily the identity of goods is lost between the time of acquisition and the time of sale. 330-10-30330-10-30-11 Accordingly, if the materials purchased in various lots are identical and interchangeable, the use of identified cost of the various lots may not produce the most useful finan cial statements.This fact has resulted in the general acceptance of several assumptions with respect to the flow of cost factors such as FIFO, average, and LIFO to provide practical bases for the measurement of periodic income. 330-10-30330-10-30-12 Standard costs are acceptable if adjusted at reasonable intervals to reflect current conditions so that at the balance-sheet date standard costs reasonably approximate costs computed under one of the recognized bases.In such cases descriptive language shall be used which will express this relationship, as, for instance, â€Å"approximate costs determined on the first-in first-out basis,† or, if it is desired to mention standard costs, â€Å"at standard costs, approximating average costs. † 330-10-30330-10-30-13 In some situations a reversed mark-up procedure of inventory pricing, such as the retail inventory method, may be both practical and appropriate.The business operations in some cases may be such as to make it desirab le to apply one of the acceptable methods of determining cost to one portion of the inventory or components thereof and another of the acceptable methods to other portions of the inventory. 330-10-30330-10-30-14 Although selection of the method should be made on the basis of the individual circumstances, financial statements will be more useful if uniform methods of inventory pricing are adopted by all companies within a given industry. >Consistency Required 330-10-30330-10-30-15 While the basis of stating inventories does not affect the overall gain or loss on the ultimate disposition of inventory items, any inconsistency in the selection or employment of a basis may improperly affect the periodic amounts of income or loss. Because of the common use and importance of periodic statements, a procedure adopted for the treatment of inventory items shall be consistently applied in order that the results reported may be fairly allocated between years. >Purchases and Sales of Invent ory with the Same Counterparty 330-10-30330-10-30-16 For a discussion of the initial measurement of inventory purchased from an entity to which it also sells inventory in the same line of business, see paragraphs 845-10-55-10 through 55-26. > Costs Resulting from Share-Based Payment Transactions See paragraph 718-10-25-2 for a discussion of share-based payment capitalized as a part of inventory. 330-10-30330-10-30-17 > Costs of Computer Software to Be Sold, Leased, or Otherwise Marketed 30-10-30330-10-30-18 See Sections 985-20-25 and 985-20-35 and paragraphs 985-20-55-2 through 55-3 for a discussion of accounting for the costs of producing and acquiring computer software, including software that is marketed as part of a product or process. > Costs of Certain Construction-Type and Production-Type Contracts 330-10-30330-10-30-19 See Section 605-35-25 for a discussion of accounting for contract and precontract costs of certain construction-type and production-type contracts. 3 30-10-35 Subsequent MeasurementNote: General Note The Subsequent Measurement Section provides guidance on an entity’s subsequent measurement and subsequent recognition of an item. Situations that may result in subsequent changes to carrying amount include impairment, fair value adjustments, depreciation and amortization, and so forth. General > Adjustments to Lower of Cost or Market 330-10-35330-10-35-1 A departure from the cost basis of pricing the inventory is required when the utility of the goods is no longer as great as their cost.Where there is evidence that the utility of goods, in their disposal in the ordinary course of business, will be less than cost, whether due to physical deterioration, obsolescence, changes in price levels, or other causes, the difference shall be recognized as a loss of the current period. This is generally accomplished by stating such goods at a lower level commonly designated as market market. 330-10-35330-10-35-2 The cost basis of record ing inventory ordinarily achieves the objective of a proper matching of costs and revenues.However, under certain circumstances cost may not be the amount properly chargeable against the revenues of future periods. A departure from cost is required in these circumstances because cost is satisfactory only if the utility of the goods has not diminished since their acquisition; a loss of utility shall be reflected as a charge against the revenues of the period in which it occurs. Thus, in accounting for inventories, a loss shall be recognized whenever the utility of goods is impaired by damage, deterioration, obsolescence, changes in price levels, or other causes.The measurement of such losses shall be accomplished by applying the rule of pricing inventories at the lower of cost or market. This provides a practical means of measuring utility and thereby determining the amount of the loss to be recognized and accounted for in the current period. 330-10-35330-10-35-3 The rule of lower of cost or market is intended to provide a means of measuring the residual usefulness of an inventory expenditure.The term market is therefore to be interpreted as indicating utility on the inventory date and may be thought of in terms of the equivalent expenditure which would have to be made in the ordinary course at that date to procure corresponding utility. 330-10-35330-10-35-4 As a general guide, utility is indicated primarily by the current cost of replacement of the goods as they would be obtained by purchase or reproduction. In applying the rule, however, judgment must always be exercised and no loss shall be recognized unless the evidence indicates clearly that a loss has been sustained.There are therefore exceptions to such a standard. Replacement or reproduction prices would not be appropriate as a measure of utility when the estimated sales value, reduced by the costs of completion and disposal, is lower, in which case the realizable value so determined more appropriately measures utility. 330-10-35330-10-35-5 Furthermore, when the evidence indicates that cost will be recovered with an approximately normal profit upon sale in the ordinary course of business, no loss shall be recognized even though replacement or reproduction costs are lower.This might be true, for example, in the case of production under firm sales contracts at fixed prices, or when a reasonable volume of future orders is assured at stable selling prices. 330-10-35-6 If inventory has been the hedged item in a fair value hedge, the inventory’s cost basis used in the lower 330- 10-35of cost or market accounting shall reflect the effect of the adjustments of its carrying amount made pursuant to paragraph 815-25-35-1(b). 330-10-35330-10-35-7 Because of the many variations of circumstances encountered in inventory pricing, the definition of market is intended as a guide rather than a literal rule.It shall be applied realistically in light of the objectives expressed in this Subtopi c and with due regard to the form, content, and composition of the inventory. For example, the retail inventory method, if adequate markdowns are currently taken, accomplishes the objectives described herein. It is also recognized that, if a business is expected to lose money for a sustained period, the inventory shall not be written down to offset a loss inherent in the subsequent operations. 30-10-35330-10-35-8 Depending on the character and composition of the inventory, the rule of lower of cost or market may properly be applied either directly to each item or to the total of the inventory (or, in some cases, to the total of the components of each major category). The method shall be that which most clearly reflects periodic income. 330-10-35330-10-35-9 The purpose of reducing inventory to market is to reflect fairly the income of the period. The most common practice is to apply the lower of cost or market rule separately to each item of the inventory.However, if there is only on e end-product category the cost utility of the total stock—the inventory in its entirety—may have the greatest significance for accounting purposes. Accordingly, the reduction of individual items to market may not always lead to the most useful result if the utility of the total inventory to the business is not below its cost. This might be the case if selling prices are not affected by temporary or small fluctuations in current costs of purchase or manufacture. 30-10-35330-10-35-10 Similarly, where more than one major product or operational category exists, the application of the lower of cost or market rule to the total of the items included in such major categories may result in the most useful determination of income. When no loss of income is expected to take place as a result of a reduction of cost prices of certain goods because others forming components of the same general categories of finished products have a market equally in excess of cost, such components need not be adjusted to market to the extent that they are in balanced quantities.Thus, in such cases, the rule of lower of cost or market, may be applied directly to the totals of the entire inventory, rather than to the individual inventory items, if they enter into the same category of finished product and if they are in balanced quantities, provided the procedure is applied consistently from year to year. 330-10-35330-10-35-11 To the extent, however, that the stocks of particular materials or components are excessive in relation to others, the more widely recognized procedure of applying the lower of cost or market to the individual items constituting the excess shall be followed.This would also apply in cases in which the items enter into the production of unrelated products or products having a material variation in the rate of turnover. Unless an effective method of classifying categories is practicable, the rule shall be applied to each item in the inventory. 330-10-35330-10 -35-12 See paragraphs 330-10-30-9 through 30-14 for guidance on inventory pricing methods. > Loss Due to Sales Incentive 330-10-35330-10-35-13 The offer of a sales incentive that will result in a loss on the sale of a product may indicate an impairment of existing inventory under this Subtopic. gt; New Cost Basis 330-10-35-14 In the case of goods which have been written down below cost at the close of a fiscal year, such 330- 10-35reduced amount is to be considered the cost for subsequent accounting purposes. Paragraph 270-10-45-6 provides guidance for preparing interim financial statements. > Stating Inventories Above Cost 330-10-35330-10-35-15 Only in exceptional cases may inventories properly be stated above cost.For example, precious metals having a fixed monetary value with no substantial cost of marketing may be stated at such monetary value; any other exceptions must be justifiable by inability to determine appropriate approximate costs, immediate marketability at quote d market price, and the characteristic of unit interchangeability. 330-10-35330-10-35-16 It is generally recognized that income accrues only at the time of sale, and that gains may not be anticipated by reflecting assets at their current sales prices.However, exceptions for reflecting assets at selling prices are permissible for both of the following: a. Inventories of gold and silver, when there is an effective government-controlled market at a fixed monetary value b. Inventories representing agricultural, mineral, and other products, with all of the following criteria: 1. Units of which are interchangeable 2. Units of which have an immediate marketability at quoted prices 3. Units for which appropriate costs may be difficult to obtain.Where such inventories are stated at sales prices, they shall be reduced by expenditures to be incurred in disposal. > Purchase Commitments 330-10-35330-10-35-17 A net loss on firm purchase commitments for goods for inventory, measured in the same way as are inventory losses, shall be recognized in the accounts. The recognition in a current period of losses arising from the decline in the utility of cost expenditures is equally applicable to similar losses which are expected to arise from firm, uncancelable, and unhedged commitments for the future purchase of inventory items. 30-10-35330-10-35-18 The utility of such commitments is not impaired, and hence there is no loss, when the amounts to be realized from the disposition of the future inventory items are adequately protected by firm sales contracts or when there are other circumstances that reasonably assure continuing sales without price decline. > Accounting Changes 330-10-35330-10-35-19 Paragraph 250-10-55-1 explains that a change in composition of the elements of cost included in inventory is an accounting change and provides related guidance. 30-10-35330-10-35-20 The definition of direct effects of a change in accounting principle includes a change in inventory va luation methods as an accounting change. > Vendor Accounting for Consideration Given to a Customer or Reseller See Subtopic 605-50 for a discussion of consideration given by a vendor to a customer. 330-10-35330-10-35-21 > Customer or Reseller Accounting for Consideration Received from a Vendor 330-10-35330-10-35-22 See Section 605-50 for a discussion of accounting by a customer (including a reseller) for consideration received from a vendor. >Interim Financial Reporting See paragraph 270-10-45-6 for a discussion of practices used in determining costs of inventory on an 330-10-35330-10-35-23 interim basis. 330-10-45 Other Presentation Matters Note: General Note The Other Presentation Matters Section provides guidance on other presentation matters not addressed in the Recognition, Initial Measurement, Subsequent Measurement, and Derecognition Sections. Other presentation matters may include items such as current or long-term balance sheet classification, cash flow presentatio n, earnings per share matters, and so forth.The FASB Codification also contains Presentation Topics, which provide guidance for general presentation and display items. See those Topics for general guidance. General > Change in Composition is Accounting Change 330-10-45330-10-45-1 See paragraph 330-10-35-19 for guidance on dealing with the effects of an accounting change resulting from a change in elements of cost included in inventory inventory. > Costs of Certain Construction-Type and Production-Type Contracts 330-10-45330-10-45-2 See paragraphs 605-35-45-3 through 45-5 for guidance on presenting contract costs of certain construction-type and production-type contracts. 30-10-50 Disclosure Note: General Note The Disclosure Section provides guidance regarding the disclosure in the notes to financial statements. In some cases, disclosure may relate to disclosure on the face of the financial statements. General > Basis for Stating Inventories 330-10-50330-10-50-1 The basis of stating inventories shall be consistently applied and shall be disclosed in the financial statements; whenever a significant change is made therein, there shall be disclosure of the nature of the change and, if material, the effect on income. A change of such basis ay have an important effect upon the interpretation of the financial statements both before and after that change, and hence, in the event of a change, a full disclosure of its nature and of its effect, if material, upon income shall be made. > Losses from Application of Lower of Cost or Market 330-10-50330-10-50-2 When substantial and unusual losses result from the application of the rule of lower of cost or market it will frequently be desirable to disclose the amount of the loss in the income statement as a charge separately identified from the consumed inventory costs described as cost of goods sold. gt; Goods Stated Above Cost Where goods are stated above cost this fact shall be fully disclosed. 330-10-50330-10-5 0-3 > Stating Inventories at Sales Prices 330-10-50330-10-50-4 Where such inventories are stated at sales prices, the use of such basis shall be fully disclosed in the financial statements. > Losses on Firm Purchase Commitments 330-10-50330-10-50-5 The amounts of net losses on firm purchase commitments accrued under paragraph 330-10-35-17 shall be disclosed separately in the income statement. >Disclosure of Significant Estimates 330-10-50330-10-50-6 See Example 1 (paragraph 330-10-55-8) for an illustration of the disclosure of significant estimates applicable to inventories as required by Section 275-10-50. 330-10-55 Implementation Guidance and Illustrations Note: General Note The Implementation Guidance and Illustrations Section contains implementation guidance and illustrations that are an integral part of the Subtopic. The implementation guidance and illustrations do not address all possible variations.Users must consider carefully the actual facts and circumstances in r elation to the requirements of the Subtopic. General 330-10-55330-10-55-1 This Section, which is an integral part of the requirements of this Topic, provides general guidance to be used in accounting for inventory Certain assumptions have been made to simplify the computations and focus on the inventory. issue at hand in each illustration. > >> Implementation Guidance Market Decline in Interim Period 30-10-55330-10-55-2 If near-term price recovery is uncertain, a decline in the market price of inventory below cost during an interim period shall be accounted for as follows. Paragraph 270-10-45-6 requires that the inventory be written down to the lower of cost or market unless either of the following conditions is met: a. Substantial evidence exists that market prices will recover before the inventory is sold. b. In the case of last-in, first-out (LIFO) inventory, substantial evidence exists that inventory amounts will be restored by year-end. A write-down is generally requir ed nless the decline is due to seasonal price fluctuations. >> Costs Capitalized to Inventory for Tax Purposes 330-10-55330-10-55-3 The following provides guidance as to whether the types of costs that are required to be allocated to inventories for tax purposes under the Uniform Capitalization Rules for Inventory under the Tax Reform Act of 1986 would be capitalizable under generally accepted accounting principles (GAAP) and, if so, whether the costing method required for tax purposes is a preferable method for purposes of justifying a change in accounting principle. 30-10-55330-10-55-4 The fact that a cost is capitalizable for tax purposes does not, in itself, indicate that it is preferable, or even appropriate, to capitalize that cost for financial reporting purposes. Certain of the additional costs that are required to be capitalized for tax purposes may also be capitalizable for financial reporting purposes, depending on factors such as the nature of the entity's operatio n and industry practice. That determination, however, can only be made after an analysis of the individual facts and circumstances. gt;;gt; ;gt;;gt;;gt; Capitalizing Pension and Other Postretirement Cost Into Inventory Interest Cost Component 330-10-55330-10-55-5 A fundamental aspect of Sections 715-30-35 and 715-60-35 is to combine or aggregate the various pension and other postretirement cost components, including service cost, interest cost, expected return on plan assets, and amortization of all of the following items recognized in accumulated other comprehensive income: a. Net transition asset or obligation b. Prior service cost or credit c.Net gain or loss. 330-10-55330-10-55-6 In the aggregate, net periodic pension and other postretirement cost is viewed as an element of employee compensation. Therefore, when it is appropriate to capitalize employee compensation in connection with the construction or production of an asset, the net periodic pension and other postretirement co st applicable to the pertinent employees for the period (including interest cost), not individual components of that amount, is the relevant amount. ;gt;;gt;;gt; Net Periodic Pension Income 30-10-55330-10-55-7 If an entity's cost allocation process capitalizes net periodic pension cost as part of the cost of inventory or other assets, net periodic pension income also shall be capitalized, thereby reducing the total employee compensation and other costs being capitalized. > >> Illustrations Example 1: Disclosure of Significant Estimates 330-10-55330-10-55-8 This Example illustrates the guidance in paragraph 330-10-50-6 regarding the disclosure of significant estimates related to inventory. Entity A manufactures high technology stereo equipment.In June 19X7, one of Entity A's competitors introduced a new model stereo system with the same features as Entity A's Model A. The competitor's version sells for significantly less than Entity A's suggested retail price for Model A. Th e introduction of this product resulted in a sharp decrease in the sales volume of Model A. As of December 31, 19X7, Entity A has accumulated significant inventory quantities beyond its normal short-term needs of its Model A system. Inventory for Model A ($6 million) represents approximately 20 percent of Entity A's inventory at that date.The remaining 80 percent of Entity A's inventory consists of products experiencing only normal competitive pressures. Entity A has established provisions for obsolescence for this latter group of products in the normal course of business. 330-10-55330-10-55-9 Management has developed a program to provide substantial dealer incentives on purchases of the Model A, which it expects will result in the sale of this inventory in the near term. Because of the existing high profit margin on its stereo systems, Entity A would continue to earn a marginal profit on sales of the Model A under the new program.It is also reasonably possible, however, that the pr ogram will not be wholly successful, and, accordingly, a material loss could ultimately result on the disposal of the inventory. 330-10-55330-10-55-10 The entity would disclose the following. As of December 31, 19X7, some portion of $6 million of inventory of one of the entity's products is in excess of Entity A's current requirements based on the recent level of sales. Management has developed a program to reduce this inventory to desired levels over the near term and believes no loss will be incurred on its disposition.No estimate can be made of a range of amounts of loss that are reasonably possible should the program not be successful. 330-10-55330-10-55-11 This situation meets the criteria for disclosure under paragraph 275-10-50-8 because circumstances that existed at the date of the financial statements, including the decreasing sales volume and excessive quantities of inventory of Model A, make it at least reasonably possible that management's plan to liquidate its excess in ventory without a loss will be less than fully successful and that such an outcome would have a near-term material effect on the entity's financial statements. 30-10-55330-10-55-12 In this Example, Entity A discloses the existence of potentially excess quantities of inventory at the date of the financial statements and indicates that the uncertainty is expected to be resolved in the near term. The disclosure is intended to provide users with insight into management's assessment of recoverability of the cost of inventories existing at the date of the financial statements.Although disclosure of the $6 million carrying amount of the inventory of Model A is not required because, based on the facts presented, $6 million does not constitute a reasonable estimate of loss on the disposal of the inventory or the maximum amount in an estimated range of loss, disclosure of this amount is not misleading and may provide useful information. 330-10-55330-10-55-13 Discussion of Entity A's provision for obsolescence for the remaining 80 percent of its inventory is not required because it is not considered reasonably possible that additional aterial losses on this inventory will occur. 330-10-75 XBRL Elements Note: General Note This section contains a list of XBRL elements that reference paragraphs in this Subtopic. For additional details regarding changes to the development version of the US GAAP Financial Reporting Taxonomy, refer to the FASB taxonomy review and comment system on the FASB web site (www. fasb. org). Adjustments for Change in Accounting Principle [Domain]Element Name: ChangeInAccountingPrincipleMember This XBRL element references the following paragraph(s)/term(s) in this Subtopic: Direct Effects of a Change in Accounting Principle This XBRL element references the following paragraph(s)/term(s) in other Subtopic(s): Accounting Change Change in Accounting Principle Indirect Effects of a Change in Accounting Principle 250 Accounting Changes and Error Corrections > 10 Overall > 50 Disclosure > General, 50-1(b)(1)-(2) 250 Accounting Changes and Error Corrections > 10 Overall > 50 Disclosure > General, 50-2Adjustments for New Accounting Pronouncement [Member] Element Name: NewAccountingPronouncementMember This XBRL element references the following paragraph(s)/term(s) in this Subtopic: Direct Effects of a Change in Accounting Principle This XBRL element references the following paragraph(s)/term(s) in other Subtopic(s): Accounting Change Change in Accounting Principle Indirect Effects of a Change in Accounting Principle Inventory AdjustmentsElement Name: InventoryAdjustments This XBRL element references the following paragraph(s)/term(s) in this Subtopic: 330 Inventory > 10 Overall > 50 Disclosure > General, 50-1 This XBRL element references the following paragraph(s)/term(s) in other Subtopic(s): 210 Balance Sheet > 10 Overall > S99 SEC Materials > General, S99-1(SX 210. 5-02. 6(b)) Inventory Finished Goods , Policy [Policy Text Block] Element Name: InventoryFinishedGoodsPolicy This XBRL element references the ollowing paragraph(s)/term(s) in this Subtopic: Inventory 250 Accounting Changes and Error Corrections > 10 Overall > 50 Disclosure > General, 50-2 250 Accounting Changes and Error Corrections > 10 Overall > 50 Disclosure > General, 50-3 270 Interim Reporting > 10 Overall > 45 Other Presentation > General, 45-12 270 Interim Reporting > 10 Overall > 45 Other Presentation > General, 45-13 270 Interim Reporting > 10 Overall > S99 SEC Materials > General, S99-1(SX 210. 0-01. (b)(6)) Selling, General and Administrative Expense Element Name: SellingGeneralAndAdministrativeExpense This XBRL element references the following paragraph(s)/term(s) in this Subtopic: 330 Inventory > 10 Overall > 30 Initial Measurement > General, 30-8 This XBRL element references the following paragraph(s)/term(s) in other Subtopic(s): 225 Income Statement > 10 Overall > S99 SEC Materials > General, S99-2(SX 210. 5-03. 4) 2011-01Type of Change [Domain] (Deprecated 2011-01-31)Element Name: TypeOfChangeDomain This XBRL element references the following paragraph(s)/term(s) in this Subtopic: Direct Effects of a Change in Accounting Principle This XBRL element references the following paragraph(s)/term(s) in other Subtopic(s): Accounting Change Change in Accounting Principle Indirect Effects of a Change in Accounting Principle Retrospective Application 250 Accounting Changes and Error Corrections > 10 Overall > 50 Disclosure > General, 50-1(a) 250 Accounting Changes and Error Corrections > 10 Overall > 50 Disclosure > General, 50-2 250 Accounting Changes and Error Corrections > 10 Overall > 50 Disclosure > General, 50-3 250 Accounting Changes and Error Corrections > 10 Overall > S99 SEC Materials > General, S99-5(SAB TOPIC 11. M) 330-10-S00 Status Note: General Note The Status Section identifies changes to this Subtopic resulting from Accounting Standards Updates.The Section provides references to the affected Codification content and links to the related Accounting Standards Updates. Nonsubstantive changes for items such as editorial, link and similar corrections are included separately in Maintenance Updates. General 330-10-S00330-10-S00-1 Paragraph 330-10-S35-2 The following table identifies the changes made to this Subtopic. Action Amended Accounting Standards Update Accounting Standards Update No. 2009-07 Date 09/15/2009 330-10-S35 Subsequent Measurement Note: General Note The Subsequent Measurement Section provides guidance on an entity’s subsequent measurement and subsequent recognition of an item.Situations that may result in subsequent changes to carrying amount include impairment, fair value adjustments, depreciation and amortization, and so forth. General > Restoration of Previously Written-Down Inventory Value 330-10-S35330-10-S35-1 See paragraph 330- 10-S99-2, SAB Topic 5. BB, for SEC Staff views on restoration of inventory value following a previous write-down to lower of cost or market. > Classification of Inventory Markdowns and Other Costs Associated with a Restructuring 330-10-S35330-10-S35-2 See paragraph 420-10-S99-3, SEC Observer Comment: Classification of Inventory Markdowns and Other Costs Associated with Restructuring, for SEC Staff views on income statement classification of inventory markdowns associated with a restructuring. 330-10-S45 Other Presentation MattersNote: General Note The Other Presentation Matters Section provides guidance on other presentation matters not addressed in the Recognition, Initial Measurement, Subsequent Measurement, and Derecognition Sections. Other presentation matters may include items such as current or long-term balance sheet classification, cash flow presentation, earnings per share matters, and so forth. The FASB Codification also contains Presentation Topics, which provide guida nce for general presentation and display items. See those Topics for general guidance. General > Separate Presentation of Classes of Inventory 330-10-S45-1 See paragraph 210-10-S99-1, Regulation S-X Rule 5-02. 6, for requirements for inventory presentation 330- 10-S45on the balance sheet. 30-10-S50 Disclosure Note: General Note The Disclosure Section provides guidance regarding the disclosure in the notes to financial statements. In some cases, disclosure may relate to disclosure on the face of the financial statements. General > Inventory Disclosure Requirements See paragraph 210-10-S99-1, Regulation S-X Rules 5-02. 6(b) through (d), for inventory disclosure 330-10-S50330-10-S50-1 requirements. > LIFO Liquidations 330-10-S50330-10-S50-2 See paragraph 330-10-S99-3, SAB Topic 11. F, for SEC Staff views on disclosure of income realized as a result of a last-in, first-out (LIFO) liquidation. 330-10-S55 Implementation Guidance and IllustrationsNote: General Note The Implementat ion Guidance and Illustrations Section contains implementation guidance and illustrations that are an integral part of the Subtopic. The implementation guidance and illustrations do not address all possible variations. Users must consider carefully the actual facts and circumstances in relation to the requirements of the Subtopic. General > LIFO Inventory Practices 330-10-S55330-10-S55-1 See paragraph 330-10-S99-1, SAB Topic 5. L, for SEC Staff views on appropriate last-in, first-out (LIFO) accounting practices. 330-10-S75 XBRL Elements Note: General Note This section contains a list of XBRL elements that reference paragraphs in this Subtopic.For additional details regarding changes to the development version of the US GAAP Financial Reporting Taxonomy, refer to the FASB taxonomy review and comment system on the FASB web site (www. fasb. org). Effect of LIFO Inventory Liquidation on Income Element Name: EffectOfLIFOInventoryLiquidationOnIncome This XBRL element references the fol lowing paragraph(s)/term(s) in this Subtopic: 330 Inventory > 10 Overall > S50 Disclosure > General, S50-2 330 Inventory > 10 Overall > S99 SEC Materials > General, S99-3 330 Inventory > 10 Overall > S99 SEC Materials > General, S99-3(SAB TOPIC 11. F) Inventory, Raw Materials, Net of ReservesElement Name: InventoryRawMaterialsNetOfReserves This XBRL element references the following paragraph(s)/term(s) in this Subtopic: 330 Inventory > 10 Overall > S99 SEC Materials > General, S99-2(SAB TOPIC 5. BB) This XBRL element references the following paragraph(s)/term(s) in other Subtopic(s): 210 Balance Sheet > 10 Overall > S99 SEC Materials > General, S99-1(SX 210. 5-02. 6(a)(4)) Inventory, Supplies, Net of Reserves Element Name: InventorySuppliesNetOfReserves This XBRL element references the following paragraph(s)/term(s) in this Subtopic: 330 Inventory > 10 Overall > S99 SEC Materials > General, S99-2(SAB TOPIC 5. BB) This XBRL elemen t references the following paragraph(s)/term(s) in other Subtopic(s): 210 Balance Sheet > 10 Overall > S99 SEC Materials > General, S99-1(SX 210. 5-02. 6(a)(5))Inventory, Work in Process and Raw Materials, Net of Reserves Element Name: InventoryWorkInProcessAndRawMaterialsNetOfReserves This XBRL element references the following paragraph(s)/term(s) in this Subtopic: 330 Inventory > 10 Overall > S99 SEC Materials > General, S99-2(SAB TOPIC 5. BB) This XBRL element references the following paragraph(s)/term(s) in other Subtopic(s): 210 Balance Sheet > 10 Overall > S99 SEC Materials > General, S99-1(SX 210. 5-02. 6(a)(3),(4)) Inventory, Work in Process, Net of Reserves Element Name: InventoryWorkInProcessNetOfReserves This XBRL element references the following paragraph(s)/term(s) in this Subtopic: 330 Inventory > 10 Overall > S99 SEC Materials > General, S99-2(SAB TOPIC 5.BB) This XBRL element references the following paragraph(s)/term(s) in other S ubtopic(s): 210 Balance Sheet > 10 Overall > S99 SEC Materials > General, S99-1(SX 210. 5-02. 6(a)(3)) Other Inventory, Net of Reserves Element Name: OtherInventoryNetOfReserves This XBRL element references the following paragraph(s)/term(s) in this Subtopic: 330 Inventory > 10 Overall > S99 SEC Materials > General, S99-2(SAB TOPIC 5. BB) This XBRL element references the following paragraph(s)/term(s) in other Subtopic(s): 210 Balance Sheet > 10 Overall > S99 SEC Materials > General, S99-1(SX 210. 5-02. 6) 330-10-S99 SEC Materials Note: General Note As more fully described in the Notice to Constituents, the Codification includes selected SEC and SEC Staff content for reference by ublic companies. The Codification does not replace or affect how the SEC or SEC Staff issues or updates SEC content. SEC Staff content does not constitute Commission-approved rules or interpretations of the SEC. General > >> >>> SEC Staff Guidance Staff Accountin g Bulletins SAB Topic 5. L, LIFO Inventory Practices The following is the text of SAB Topic 5. L, LIFO Inventory Practices. 330-10-S99330-10-S99-1 Facts: On November 30, 1984, AcSEC and its Task Force on LIFO Inventory Problems (task force) issued a paper, â€Å"Identification and Discussion of Certain Financial Accounting and Reporting Issues Concerning LIFO Inventories. This paper identifies and discusses certain financial accounting and reporting issues related to the last-in, first-out (LIFO) inventory method for which authoritative accounting literature presently provides no definitive guidance. For some issues, the task force's advisory conclusions recommend changes in current practice to narrow the diversity which the task force believes exists. For other issues, the task force's advisory conclusions recommend that current practice should be continued for financial reporting purposes and that additional accounting guidance is unnecessary. Except as otherwise noted in the pap er, AcSEC generally supports the task force's advisory conclusions.As stated in the issues paper, â€Å"Issues papers of the AICPA's accounting standards division are developed primarily to identify financial accounting and reporting issues the division believes need to be addressed or clarified by the Financial Accounting Standards Board. † On February 6, 1985, the FASB decided not to add to its agenda a narrow project on the subject of LIFO inventory practices. Question 1: What is the SEC staff's position on the issues paper? Interpretive Response: In the absence of existing authoritative literature on LIFO accounting, the staff believes that registrants and their independent accountants should look to the paper for guidance in determining what constitutes acceptable LIFO accounting practice. FN11 In this connection, the staff considers the paper to be an accumulation of existing cceptable LIFO accounting practices which does not establish any new standards and does not div erge from GAAP. FN11 In ASR 293 (July 2, 1981) see Financial Reporting Codification 205, the Commission expressed its concerns about the inappropriate use of Internal Revenue Service (IRS) LIFO practices for financial statement preparation. Because the IRS amended its regulations concerning the LIFO conformity rule on January 13, 1981, allowing companies to apply LIFO differently for financial reporting purposes than for tax purposes, the Commission strongly encouraged registrants and their independent accountants to examine their financial reporting LIFO practices.In that release, the Commission acknowledged the â€Å"task force which has been established by AcSEC to accumulate information about [LIFO] application problems† and noted that â€Å"This type of effort, in addition to self-examination [of LIFO practices] by individual registrants, is appropriate†¦ † The staff also believes that the advisory conclusions recommended in the issues paper are generally con sistent with conclusions previously expressed by the Commission, such as: 1. Pooling-paragraph 4-6 of the paper discusses LIFO inventory pooling and concludes â€Å"establishing separate pools with the principal objective of facilitating inventory liquidations is unacceptable. In Accounting and Auditing Enforcement Release 35, August 13, 1984, the Commission stated that it believes that the Company improperly realigned its LIFO pools in such a way as to maximize the likelihood and magnitude of LIFO liquidations and thus, overstated net income. 2. New Items-paragraph 4-27 of the paper discusses determination of the cost of new items and concludes â€Å"if the double extension or an index technique is used, the objective of LIFO is achieved by reconstructing the base year cost of new items added to existing pools. † In ASR 293, the Commission stated that when the effects of inflation on the cost of new products are measured by making a comparison with current cost as the base- year cost, rather than a reconstructed base-year cost, income is improperly increased.Question 2: If a registrant utilizes a LIFO practice other than one recommended by an advisory conclusion in the issues paper, must the registrant change its practice to one specified in the paper? Interpretive Response: Now that the issues paper is available, the staff believes that a registrant and its independent accountants should re-examine previously adopted LIFO practices and compare them to the recommendations in the paper. In the event that the registrant and its independent accountants conclude that the registrant's LIFO practices are preferable in the circumstances, they should be prepared to justify their position in the event that a question is raised by the staff.Question 3: If a registrant elects to change its LIFO practices to be consistent with the guidance in the issues paper and discloses such changes in accordance with APB Opinion 20 [Subtopic 250-10] will the registrant be requ ested by the staff to explain its past practices and its justification for those practices? Interpretive Response: The staff does not expect to routinely raise questions about changes in LIFO practices which are made to make a company's accounting consistent with the recommendations in the issues paper. >>> SAB Topic 5. BB, Inventory Valuation Allowance The following is the text of SAB Topic 5. BB, Inventory Valuation Allowance. 330-10-S99330-10-S99-2 Facts: ARB 43, Chapter 4, Statement 5 [paragraph 330-10-35-1], specifies that: â€Å"[a] departure from the cost basis of pricing the inventory is required when the utility of the goods is no longer as great as its cost.Where there is evidence that the utility of goods, in their disposal in the ordinary course of business, will be less than cost, whether due to physical obsolescence, changes in price levels, or other causes, the difference should be recognized as a loss of the current period. This is generally accomplished by stating such goods at a lower level commonly designated as market. † Footnote 2 to that same chapter indicates that â€Å"[i]n the case of goods which have been written down below cost at the close of a fiscal period, such reduced amount is to be considered the cost for subsequent accounting purposes. † Lastly, Opinion 20 provides â€Å"inventory obsolescence† as one of the items subject to estimation and changes in estimates under the guidance in paragraphs 10-11 and 31-33 of that Opinion. Question: Does the write-down of inventory to the lower of ost or market, as required by ARB 43 [Section 330-10-35], create a new cost basis for the inventory or may a subsequent change in facts and circumstances allow for restoration of inventory value, not to exceed original historical cost? Interpretive Response: Based on ARB 43, footnote 2, the staff believes that a write-down of inventory to the lower of cost or market at the close of a fiscal period creates a new cost b asis that subsequently cannot be marked up based on changes in underlying facts and circumstances. FN68 FN68 See also disclosure requirement for inventory balances in Rule 5-02(6) of Regulation S-X. >>> SAB Topic 11. F, LIFO LiquidationsThe following is the text of SAB Topic 11. F, LIFO Liquidations. 330-10-S99330-10-S99-3 Facts: Registrant on LIFO basis of accounting liquidates a substantial portion of its LIFO inventory and as a result includes a material amount of income in its income statement which would not have been recorded had the inventory liquidation not taken place. Question: Is disclosure required of the amount of income realized as a result of the inventory liquidation? Interpretive Response: Yes. Such disclosure would be required in order to make the financial statements not misleading. Disclosure may be made either in a footnote or parenthetically on the face of the income statement.

Bio of Stalin - 1535 Words

Brief Born: 1879 Died: 5 March 1953 Birthplace: Gori, Georgia (now Republic of Georgia) Best known as: The dictatorial leader of the U.S.S.R. from 1928 to 1953 Name at birth: Iosif Vissarionovich Dzhugashvili Ruthless and ambitious, Joseph Stalin grabbed control of the Soviet Union after the death of V.I. Lenin in 1924. As a member of the Bolshevik party, Joseph Stalin (his adopted name, meaning Man of Steel) had an active role in Russias October Revolution in 1917. He maneuvered his way up the communist party hierarchy, and in 1922 was named General Secretary of the Central Committee. By the end of the 1920s, Joseph Stalin had expelled his rival Leon Trotsky, consolidated power, and was the de facto dictator of the Soviet†¦show more content†¦He was arrested multiple times between 1902 and 1913, and subjected to imprisonment and exile in Siberia. In 1906, Stalin married Ekaterina â€Å"Kato† Svanidze (1885-1907), a seamstress. The couple had one son, Yakov (1907-1943), who died as a prisoner in Germany during World War II. Ekaterina perished from typhus when her son was an infant. In 1918 (some sources cite 1919), Stalin married his second wife, Nadezhda â€Å"Nadya† Alliluyeva (1901-1932), the daughter of a Russian revolutionary. They had two children, a boy and a girl. Nadezhda committed suicide in her early 30s. Stalin also fathered several children out of wedlock. Joseph Stalin’s Rise to Power In 1912, Lenin, then in exile in Switzerland, appointed Joseph Stalin to serve on the first Central Committee of the Bolshevik Party. Three years later, in November 1917, the Bolsheviks seized power in Russia. The Soviet Union was founded in 1922, with Lenin as its first leader. During these years, Stalin had continued to move up the party ladder, and in 1922 he became secretary general of the Central Committee of the Communist Party, a role that enabled him to appoint his allies to government jobs and grow a base of political support. After Lenin died in 1924, Stalin eventually outmaneuvered his rivals and won the power struggle for control of the Communist Party. By the late 1920s, he hadShow MoreRelatedHitler Vs. Stalin : A Politically Influenced Era1289 Words   |  6 PagesBre Greene Mrs. Bartel English 9 16 April 2015 Hitler vs. Stalin The mid 1900s was a very politically influenced era. Many affairs were going on at this time, and many leaders were stepping up for their countries. Two leaders in particular were Adolf Hitler and Joseph Stalin. These two dictators made some of the biggest impacts in history. The impacts made were far from positive. They wiped out whole groups of people and civilizations in hopes to gain power for their country. These two combinedRead MoreEssay on A Comparison of Hitler and Stalin1126 Words   |  5 PagesA Comparison of Hitler and Stalin Angelica Calvillo HIS 306: Twentieth-Century Europe April 26, 2010 Adolf Hitler’s Nazi Germany and Joseph Stalin’s Soviet Union are two controversial regimes. Hitler and Stalin were both Dictators of the countries they ruled. When Hitler and Stalin are compared, we can clearly see that each one of them were cold blooded killers. They are both responsible for an absurd amount of innocent deaths. Hitler is believed to be responsible for killing at leastRead Moreâ€Å"The Big Three†. When Great Britain Elected Winston S.1037 Words   |  5 Pagesand the countries didn’t want to give up control. Three great leaders led the Allies to fight Germany and paved the way to victory. First, Franklin D. Roosevelt helped the United States by giving hope and confidence to all Americans. Second, Joseph Stalin ruled Communist Russia and led them into war. Finally, Winston S. Churchill led Great Britain through a harsh time of despair when Germany attacked them first. First, Franklin D. Roosevelt helped the United States by giving hope and confidence toRead MoreLeon Trotsky s Influence On The Soviet Revolution1496 Words   |  6 Pagesrevolutionary military ideas made him a great military leader. However, Leon Trotsky was also prone to arrogance, fatal over-confidence, dismissiveness and sarcasm, qualities that contributed to his demise. His downfall was caused by Joseph Stalin as well. Joseph Stalin set out to destroy the old party leadership and take total control. Leon Trotsky was one of the most influential Russian leaders, because of his political and military leadership and revolutionary theories. Leon Trotsky helped make theRead MoreNations of Change in Germany and Russia1077 Words   |  4 Pageswhen he abdicate after growing unrest and mutiny. During, the Kaiser rule Germany had become the second industrialized country in the world and had social programs for their people. (Duffy, M... N.p.. Web. 26 Nov 2013. http://www.firstworldwar.com/bio/wilhelmii.htm.) Germany was then headed by the Weimar Republic. Germans believed that Weimar was a puppet of the Allies. The German people never had democratic government. The Germany also had to pay for the War that they lost. . The Germans wereRead MoreThe Crimes of Andrei Romanovich Chikatilo1664 Words   |  7 Pagespre-teens and the inability to sustain an erection the older he got, although he was able to ejaculate (A+E Networks). Another possibility for his inability could be the fact that he watched his mother get raped by a German soldier during the war (Bio Movie) Chikatilo’s father only made his life worse. He was drafted into the fight against Germany, let himself get captured and held prisoner. When his father finally returned home, Chikatilo was subjected to bullying at school due to his father’s â€Å"cowardice†Read MoreStalin: The Man of Steel Essay2019 Words   |  9 PagesJoseph Djugasvilli, better known as Joseph Stalin, is a man who will never be forgotten . Leader of the communist super power, The U.S.S.R. from 1929 till his death in 1953, Stalin made himself known around the world for many things, both good and bad. While Stalin administered great changes during his reign and industrialized Russia at a pace unheard of before in history, these were at the cost of millions of lives. Born on December 21st, 1879 in the small village of Gori, Georgia to a cobbler fatherRead MoreStalin Final Draft2334 Words   |  10 PagesSchrimsher AICE International History Period 7 16 December 2014 Josef Stalin: A Totalitarian Tyrant Joseph Vissarionovitch Stalin, notoriously known as one of the most ruthless and inhumane tyrants, startlingly was nominated for a Nobel Peace Prize because of his efforts to end Second World War. Yet Stalin was not flaccid in his rise to power from an irrelevant position to the dictator of the Soviet Union from 1941-1953. Joseph Stalin is ubiquitously considered a totalitarian due to his economic, socialRead MoreSir Winston Churchill Of Blenheim Palace Woodstock England1571 Words   |  7 PagesWinston Churchill s life had been a constant mess of events leading to his fight against Adolf Hitler s threat to own Europe. After the Japanese attack on Pearl Harbor, Churchill lead a successful joined strategy with the us president and Joseph Stalin during WWII to defeat the Axis powers and create after war peace. After the breakdown of the alliance, he notified the West to the expansionist threat of the soviets sir winston churchill was born in Blenheim Palace, Woodstock england in the yearRead MoreHitler s Leadership Improved The German Economy1209 Words   |  5 PagesBeing the fourth, he looked up to his two brothers and sister; Alois, Edmund, and Paula. At six years old, Hitler’s father retired from his career as a customs official and relocated the family to Linz, Austria where he spent most of his childhood (UXL Bio). When his brother, Edmund died in 1990 Hitler became detached and introverted. His loss of interest in many activities caused him to become an insouciant student and eventually dropped out of high school at age sixteen. Being an educated businessman