Inventory Valuation
/ˈɪnvənˌtɔːri ˌvæljuˈeɪʃən/
Definitions
- (n.) The accounting process of assigning monetary value to a company's inventory at the end of an accounting period for financial reporting and tax purposes.
The corporation's inventory valuation method affects its reported profits and tax obligations.
Forms
- inventory valuation
- inventory valuations
Related terms
See also
Commentary
Inventory valuation methods (FIFO, LIFO, weighted average) have legal implications for compliance with accounting standards and taxation.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.