LaTour Inc. is based in France and prepares its financial statements in accordance with IFRS. In 2014,

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LaTour Inc. is based in France and prepares its financial statements in accordance with IFRS. In 2014, it reported (in euros) cost of goods sold of €578 million and average inventory of €154 million. Briefly discuss how analysis of LaTour’s inventory turnover ratio (and comparisons to a company using GAAP) might be affected by differences in inventory accounting between IFRS and GAAP.

Inventory Turnover Ratio
Inventory Turnover RatioThe inventory turnover ratio is a ratio of cost of goods sold to its average inventory. It is measured in times with respect to the cost of goods sold in a year normally.    Inventory Turnover Ratio FormulaWhere,...
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Financial and managerial accounting

ISBN: 978-1118016114

1st edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

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