Which accounting standard requires consistency in inventory valuation methods?

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IFRS
GAAP
IAS
FASB

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Q: Which accounting standard requires consistency in inventory valuation methods?

Solution: GAAP (Generally Accepted Accounting Principles) requires that companies consistently apply their chosen inventory valuation method to ensure comparability.

Steps: 4

Step 1: Understand what inventory valuation methods are. These are ways to calculate the value of inventory a company has.
Step 2: Learn about GAAP, which stands for Generally Accepted Accounting Principles. It is a set of rules for financial reporting.
Step 3: Know that GAAP requires companies to use the same inventory valuation method consistently over time.
Step 4: Realize that consistency helps in comparing financial statements from different periods or different companies.

Which accounting standard requires consistency in inventory valuation methods?

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