[Ralphie Dos Nachos]

Hey guys,

I’m through chapter 4 and things have kind of started to click more but if someone could be a saint and maybe make a summarized list for me here i would really appreciate it. It’s hard for me to keep track of the meanings of fair value, market value, carry value, net book value etc and what things get classified at what value.

whats the difference between saying “what we have it on the books at” and what its classified at on the balance sheet, etc.

for example, as far as i know:
cash & equiv @ fair value
PPE @ historical cost
inventory @ LCNRV or LCM depending on which method????
equity securities @ fair value
Trade & AFS sec. @ fair value
HTM @ amortized cost…

if anyone can add anymore or fix anything I messed up above I’d really appreciate it. Also, they say fair value is an “Exit/Selling Price” so why would you value something such as cash and cash equiv at fair value when you’ve just acquired it when fair value is supposedly an exit price?

if someone can make sense for me of this it’d be great. thank you.

[YouCanDoIt]

Inventory
If using: LIFO or RETAIL method: use LCM
If using: FIFO or IFRS or Average weighted or Whatever: use LCNRV

FAR: 76
REG: Currently studying
AUD:
BEC:

[Author]

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