Prior to 2016, GAAP required companies to use which method? Did it matter before then what inventory costing method was used? When did this change? What changed this?

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Prior to 2016, GAAP required companies to use which method? Did it matter before then what inventory costing method was used? When did this change? What changed this?

Answer:

– LCM (Lower of Cost/Market)
– No
– In 2015, FASB’s simplification initiative issued an ASU (2015 – 11) in July 2015 regarding inventory valuation for companies which use certain inventory costs.

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