百貨店에서의 在庫資産評價方法에 관한 硏究

Abstract

Inventory consists of tangible personal property ⓐ Held for sale in ordinary course of business ⓑ In process of production for such sale ⓒ To be currently consumed in the production of such goods. Major objective of inventory valuation is proper income determination. Matching of costs and revenues. The allocation of cost of goods available for sale between the cost of goods sold during the period and the cost of goods on hand at the end of the period requires the use of inventory cost flow assumptions. The purpose of chapter 2 is to discuss and illustrate the cost flow assumptions that are in conformity with GAAP - specific identification, average cost, FIFO and LIFO. A simplified approach to LIFO, called dollar value LIFO, also is discussed. In chapter 3, for the purpose of comparative analysis of the Korean, American, Japan department store, the characteristics and history of the distribution industry are explained. Inventory values often must be determined by using an estimate because a valuation at cast may be costly or impossible. For example, inventory estimates may be required for interim reporting when a physical inventory count is impractical and a perpetual inventory system is not used. Also, certain industries, such as retail department stores, use accepted estimating methods to convert inventories valued at retail value to a cost basis. Inventory estimating methods have gained wide acceptance in the circumstances. Among these procedures are the gross profit method of estimating inventory and the retail method of converting inventories from retail value to cost. The purpose of chapter 4 is to discuss retail inventory method. I refer to the annual report of business each Department store at the Disclosure Room of the Korean Listed Companies Association. and I visit three department stores to survey the present status of in inventory valuation. The major advantage of the retail inventory method are : 1. It permits interim report to be prepared without a physical inventory being taken, but as with any inventory system, a physical count should be taken at least annually. 2. It simplifies the bookkeeping procedures because the costs of individual purchases do not need to be maintained and do not have to be related to the particular units in inventory. In addition, in retail stores merchandise is often purchased in lots and is typically priced and displayed immediately, and the bookkeeping is based on retail prices. 3. It expedites the verification of the ending inventory by physical count because the inventory in the retail stores is recorded at retail values and can therefore be compared directly with the accounting records, which are also based on retail prices, without reference to the individual purchase invoices to determine the cost of each item.