Inventory vs Finished Goods

This topic has 1 reply, 2 voices, and was last updated 2 years ago by Stephen Widberg.

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August 23, 2023 at 8:08 pm #690604
simranxdeep
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Chuckle (SEP/DEC 2021), exhibit 3
Current assets include finished goods with a cost of $84 million. The fair value of these goods is $131 million.
The question asks to calculate Deferred Tax on current assets. But isn’t finished goods just another name for inventory? And if yes, do we calculate DT on inventory?
August 24, 2023 at 7:18 pm #690652
Stephen Widberg
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DT if:
1. There is a policy of revaluation (odd).
2. There is a PUP (presumably not here).
3. If there is a FV adjustment as part of the goodwill calculation – then definitely yes.
Trusting you have watched my debrief.
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