Can someone clear up how inventory is to be valued under GAAP for a firm following FIFO? From how I read it, under LIFO it is the lower of cost of market (being between net realisable value (NRV) and NRV less a profit margin), but does this apply also to non-LIFO (and retail)?
Schweser has it as “for firms using cost methods other than LIFO or retail, inventory valuation is similar to IFRS” which is lower of cost or NRV.
A question dealing with a FIFO GAAP firm on the AM B Dec 2019 mock states that “under US GAAP, market value is defined as current replacement cost”.
My intuiton is obviously to go with what CFAI state as the right answer, but I would like to know if I am misunderstanding something or does Schweser’s position actually conflict with CFAI?