Oct 06, 2014
From the Financial Reporting Network
KPMG LLP recently commented on the proposed FASB ASU, Simplifying the Measurement of Inventory, which would replace the concept of lower of cost or market with lower of cost and net realizable value as part of the Board’s simplification initiative. KPMG supports the overall concept of simplifying the measurement of inventory as described in the proposed ASU. The firm suggested that the Board clarify certain aspects of the proposal related to applying the retail inventory method, and suggested the Board develop a broader strategy to address complexity in financial reporting.