Purpose: Relate the FASB Codification Standards to financial statement disclosures of a realworld...

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Purpose: Relate the FASB Codification Standards to financial statement disclosures of a realworld publicly traded company.Step 1: Choose a publicly-traded company that you are familiar with. Access the company’s most recent (2020 or XXXXXXXXXXK filing on the SEC’s Edgar Company Search here: https://www.sec.gov/edgar/searchedgar/companysearch.htmlStep 2: You will also access the FASB Codification at: http://aaahq.org/Research/FASB-GARS User name: AAA51182 Password: B6bJG7fStep 3: For each disclosure or financial presentation standard topics listed below, locate and cite the Codification guidelines using proper citation as demonstrated in class. Step 4: Locate the disclosure or financial statement presentation in the company’s Form 10-K. In your own words, report your company’s disclosure or financial statement presentation and describe how the company followed the Codification guidelines. Topics to be researched for Steps 3 & 4 1. What methods of measuring inventory are allowed under GAAP? 2. What are the disclosure requirements for inventory? 3. How should depreciation by applied to property, plant and equipment? 4. What are the disclosure requirements for depreciation of property, plant and equipment? 5. What are the disclosure requirements for related party transactions? Step 5: Head your paper with your name and the name of the company you are researching. Name your paper using the following format: Last name__ACC301_Spring 2022_Codification Project #1

Tanmoy · Accepted Answer

NIKE
1. What methods of measuring inventory are allowed under GAAP?
Under the Generally Accepted Accounting Principle, there are four methods used for measuring inventory. These are First-in-First Out (FIFO); Specific identification, weighted average cost and Last-in-First Out method. It is the choice of the inventory valuation method which impacts the allocation of the cost of goods offered for selling to the ending inventory as well as cost of sales (CFA Institute; 2022). 
Nike’s inventory is stated as lower of cost and net realizable value. Further, it is valued on average or based on specific identification cost basis. Further, it’s when the company transports its product from the suppliers directly to the customers, it is then the related inventory and the cost of sales is being recognized on a specific identification basis. Nike’s inventory cost is the cost of the product from the supplier of the company along with the costs like taxes, import duty, insurance, freight, logistics and other handling charges. Under GAAP, the inventories are measured at lower of costs and net realisable value. Hence, it can be stated that Nike is following the inventory valuation as per GAAP.
2. What are the disclosure requirements for inventory?
A. The disclose requirement for inventory are to disclose the accounting policies which are adopted for measuring the inventories by using the cost formula. Nike clearly mentions in its 10-K report that the inventories are valued at cost and net realizable value based on the specific identification cost (Kessi, 2019). 
B.

Purpose: Relate the FASB Codification Standards to financial statement disclosures of a realworld publicly traded company.Step 1: Choose a publicly-traded company that you are familiar with. Access...

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