Balance Sheet - Measuring Assets/Liablilities

The material says that the financila statement footnotes should include the following when measuring a firm’s assets and liabilities: “Inventories recognized as an expense” Can anyone explain this?

You gotta state the exact page and the book that you are are referring to man man.

Hi, this is from Scheweser book Accounting 2009 page 80. The financial statement footnotes should include the following when measuring a firm’s assets and liabilities: - Basis for measurement - Carrying value of inventory by category - Amount of inventory at fair value less costs to sell - Write-downs and reversals - Inventories pledged as collateral - Inventories recognized as an expense I am curious about the last point.

inventories as expense = what is the COGS part of your income statement. beginning inventory + purchases - COGS = Ending Inventory thus helping tie out the Balance sheet and the Income statement. given the various means of measuring inventory - LIFO, FIFO, etc. COGS gets affected - and thus affects the Balance Sheet for Inventory. at least this is what I think it means.

These are damaged stocks written off.