Financial Statements Prepared for Use in Other Countries 2205 the United States, the auditor may report using either (a) a U.S.-style reportmodiï¬ed to report on the accounting principles of another country (see para-graphs.09and.10)or(b)ifappropriate,thereportformoftheothercountry(seeparagraphs .11 and .12).
Retail Inventory Method. The retail inventory method is an accounting system to estimate the ending inventory and cost of goods sold. Essentially, its used to estimate the amount of ending inventory at cost.
This is a significant difference between the two methods. The lower of cost or market rules differ between U.S. GAAP and IFRS. Inventory can be written down under U.S. GAAP to market value, but not revalued upward. Under IFRS, inventory can be written down, but also written up (but only to cost).