Student access to FASB Codification, effective September 1, 2021:

• FASB Codification Academic Login Web Page

Username - AAA52315 Password - Hf42zMK

Please read the following link before you start Week 4 Discussion:

/content/enforced/27612-ACC410A-25056-2204/How_to_Use_the_FASB Codification4.pdf

BRIDGE TO THE PROFESSION

Codification Research Case

Jones Co. is in a technology-intensive industry. Recently, one of its competitors introduced a new product with technology that might render obsolete some of Jones's inventory. The accounting staff wants to follow the appropriate authoritative literature in determining the accounting for this significant market event.

Instructions

If your school has a subscription to the FASB Codification, go to FASB Codification Login Page to log in and prepare responses to the following. Provide FASB Codification references for your responses.

For example for question (a), your answer should be:

(a) The codification provides guidance at: FASB ASC 330-10-05 (Codification String: Assets > 330 Inventory > 10 Overall > 05 Background).

Be sure to provide FASB Codes for questions (b), (c), and (d).

(a) Identify the primary authoritative guidance for the accounting for inventories.

(b) List three types of goods that are classified as inventory. What characteristic will automatically exclude an item from being classified as inventory?

(c) Define "market" as used in the phrase "lower-of-cost-or-market."

(d) Explain when it is acceptable to state inventory above cost and which industries allow this practice.