Unlocking the Secrets of Inventories for the CFA Level 1 Exam

Hey there, future finance wizards! Are you ready to dive into the fascinating world of inventories? We’ve got you covered with this overview of inventory topics crucial for the CFA Level 1 Exam. So, strap in and let’s conquer these inventory concepts together!

Inventory Accounting

Inventory accounting, here we come! In this lesson, you’ll master the inventory equation, understand which costs to capitalize and expense, and learn how to make inventory adjustments when valuation falls below cost. You’ll be the inventory accounting guru in no time!

► Become an inventory accounting whiz here.

Inventory Valuation Methods

Unlock the secrets of inventory valuation methods with this lesson! Learn the four main methods: specific identification, LIFO, FIFO, and average cost, and discover the differences between periodic and perpetual inventory systems. With this knowledge, you’ll be a master at understanding inventory valuation!

► Master inventory valuation methods here.

PRE: The LIFO Method

Get ready to master the LIFO method in this eye-opening lesson! You’ll learn all about LIFO reserve, LIFO liquidation, and the required presentation and disclosures for inventories. Say goodbye to inventory confusion and hello to financial statement success!

► Become a LIFO wizard here.

Presentation and Disclosures of Inventories

Unpack the essentials of inventory presentation and the significance of disclosures under IFRS and US GAAP, alongside analytical tools like inventory turnover and gross profit margin. It’s all about understanding the backbone of financial statement analysis.

► Learn more here.