If there’s no lifo reserve, is it safe to assume it’s on fifo?
Should say in the footnotes, one way or the other. If it’s LIFO, reserve should be disclosed in the footnotes, not included on the B/S. Hope this helps…
I found them in the footnotes, but what about converting from lifo to fifo on a 10Q, do companies usually report the fifo equivalent inventories on this? Been digging through this 10Q and I just can’t find it.
Don’t think 10Q discloses. How about using 10-k figure divide by 4 to get quarterly reserve estimate for the Q.
Thank you, that seems reasonable.
phBOOM Wrote: ------------------------------------------------------- > Don’t think 10Q discloses. How about using 10-k > figure divide by 4 to get quarterly reserve > estimate for the Q. Actually, the reserve is a B/S number, not a P&L number. Dividing it by 4 would be way off. I would think you would just use the last 10K number as an estimate of the current reserve. Now on the other hand, if you are looking for the LIFO adjustment to the COGS, then I agree that you would take the adjustment calculated from the footnotes in the 10K and divide by 4…
I was referring to the P&L adjustment
Inventories Our inventories are carried at the lower of cost or market. Cost is determined by the first-in, first-out, or commonly known as FIFO, method for approximately 80 percent of our inventories at December 31, 2007 and 2006, and by the last-in, first-out, or commonly known as LIFO, method for the balance. If the FIFO method had been used to cost all inventories, the balances would have been approximately $1.8 million and $2.0 million higher at December 31, 2007 and 2006, respectively. This it? That’s the disclosure of the lifo reserve? So for my 2008 2nd Quarter Inventory, an estimate would be Interim Quarter Inventory + $1.8 million. Cogs = Interim Quarter Cogs - ( [2m - 1.8m] / 4 )