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.
Retailers often use the retail inventory method to value inventory. In most retail businesses, you can see a clear pattern between the cost of products and their retail price. This enables retailers to convert retail prices to cost for inventory valuation purposes. To calculate the final cost of the inventory using this method, calculate the cost-to-retail ratio for a specific year and multiply the ending inventory retail value by this ratio. Significance Retail businesses can use the projected retail cost to value the inventory.