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・ Lower Normandy
・ Lower North East Road, Adelaide
・ Lower North Philadelphia
・ Lower North Philadelphia Speculative Housing Historic District
・ Lower North Province
・ Lower North Sea Group
・ Lower North Shore
・ Lower Northfield, Nova Scotia
・ Lower Norton Lake
・ Lower Nossob language
・ Lower Nubia
・ Lower Nyack Snowshoe Cabin
・ Lower Oder Valley International Park
・ Lower Oder Valley National Park
・ Lower Odra Valley Landscape Park
Lower of cost or market
・ Lower Ohio, Nova Scotia
・ Lower Onslow
・ Lower Orange Water Management Area
・ Lower Otay Reservoir
・ Lower Oxford Township, Chester County, Pennsylvania
・ Lower Pacific Heights, San Francisco
・ Lower Padworth
・ Lower Paleolithic
・ Lower Pannonia
・ Lower Panzara Dam
・ Lower Parel railway station
・ Lower Park Creek Patrol Cabin
・ Lower Parker School
・ Lower Paunglaung Dam


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Lower of cost or market : ウィキペディア英語版
Lower of cost or market

Lower of cost or market (LCM or LOCOM) is a conservative approach to valuing and reporting inventory. Normally, ending inventory is stated at historical cost (what was paid to obtain it). However, there are times when the original cost of the ending inventory is greater than the cost of replacement, and thus the inventory has lost value. If the inventory has decreased in value below historical cost, then its carrying value is reduced and reported on the balance sheet. The criterion for reporting this is the current market value. Any loss resulting from the decline in the value of inventory is charged to "Cost of goods sold" (COGS) if non-material, or "Loss on the reduction of inventory to LCM" if material.
The term "lower of cost or market" is now obsolete and is officially replaced by "lower of cost and net realizable value." According to the FASB Accounting Standards Update, "An entity should measure inventory within the scope of this Update at the lower of cost and net realizable value. Net realizable value is the estimated selling prices
in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation." This FASB update makes usage consistent with the IFRS wording and removes the unfortunate use of "or" in a context where "and" was always the correct one.〔FASB Accounting Standards Update, No. 2015-11, July 2015, p. 1.〕
==See also==

* Inventory valuation
* Impaired asset
* Fair market value
* Value (economics)

抄文引用元・出典: フリー百科事典『 ウィキペディア(Wikipedia)
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