A is corrent. ASC Topic 270 states that provisions for write-downs of inventory to market should be made at interim dates on the same basis as is used at annual reporting dates. Therefore, the full $840,000 loss should be recognized when incurred in the quarter ending 6/30/Y1. Note that if this loss had been considered temporary in nature, it need not be recognized at an interim date (ASC Topic 270).
B is incorrect. ASC Topic 270 states that provisions for write-downs of inventory to market should be made at interim dates on the same basis as is used at annual reporting dates. Therefore, the full $840,000 loss should be recognized when incurred in the quarter ending 6/30/Y1. Note that if this loss had been considered temporary in nature, it need not be recognized at an interim date (ASC Topic 270).
B is incorrect. ASC Topic 270 states that provisions for write-downs of inventory to market should be made at interim dates on the same basis as is used at annual reporting dates. Therefore, the full $840,000 loss should be recognized when incurred in the quarter ending 6/30/Y1. Note that if this loss had been considered temporary in nature, it need not be recognized at an interim date (ASC Topic 270).
D is incorrect. ASC Topic 270 states that provisions for write-downs of inventory to market should be made at interim dates on the same basis as is used at annual reporting dates. Therefore, the full $840,000 loss should be recognized when incurred in the quarter ending 6/30/Y1. Note that if this loss had been considered temporary in nature, it need not be recognized at an interim date (ASC Topic 270).
|
