In a recent annual report, Kaiser Aluminum Corporation made the following statement in reference to its inventories:
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In a recent annual report, Kaiser Aluminum Corporation made the following statement in reference to its inventories: "The Company recorded pretax charges of approximately $19.4 million because of a reduction in the carrying values of its inventories caused principally by prevailing lower prices for alumina, primary aluminum, and fabricated products." What basic accounting principle caused Kaiser Aluminum to record this $19.4 million pretax charge? Brie fly describe the rationale for this principle.
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Related Book For
Financial Accounting
ISBN: 9781618533111
6th Edition
Authors: Michelle L. Hanlon, Robert P. Magee, Glenn M. Pfeiffer, Thomas R. Dyckman
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