The accounting for revenue recognition, leases, and government assistance have rightfully been the focus of many entities and practitioners recently. However, other line items on the financial statements also frequently cause confusion as well. In this report, we’ll look at some specific issues that can be troublesome that relate to the assets that entities will hopefully turn into revenue, inventory including the accounting for:
Demonstration units
Spare parts/stores inventory
Consignment inventory
Stating inventories above cost
Types of cost typically included