Inventories

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Financial reporting developments
A comprehensive guide

Consolidated and other financial statements
Revised November 2013

Noncontrolling interests, combined financial statements, parent company financial statements and consolidating financial statements

To our clients and other friends
This Financial reporting developments (FRD) publication is primarily designed to help you understand financial reporting issues related to the accounting for noncontrolling interests. This publication also includes interpretive guidance on consolidation procedure and on the presentation of combined, parentonly, and consolidating financial statements. The publication reflects our current understanding of the relevant guidance in these areas, based on our experience with financial statement preparers and related discussions with the FASB and SEC staffs. The accounting for noncontrolling interests is based on the economic entity concept of consolidated financial statements. Under the economic entity concept, all residual economic interest holders in an entity have an equity interest in the consolidated entity, even if the residual interest is relative to only a portion of the entity (that is, a residual interest in a subsidiary). Therefore, a noncontrolling interest is required to be displayed in the consolidated statement of financial position as a separate component of equity. Likewise, the consolidated net income or loss and comprehensive income or loss attributable to both controlling and noncontrolling interests is separately presented on the consolidated statement of comprehensive income. Consistent with the economic entity concept, after control is obtained, increases or decreases in ownership interests that do not result in a loss of control should be accounted for as equity transactions. However, changes in ownership interests that result in a loss of control of a…...

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Inventory

...Computers and Chemical Engineering 28 (2004) 929–941 Pharmaceutical supply chains: key issues and strategies for optimisation Nilay Shah∗ Centre for Process Systems Engineering, Department of Chemical Engineering, Imperial College of Science, Technology and Medicine, London SW7 2BY, UK Abstract Supply chain optimisation is now a major research theme in process operations and management. A great deal of research has been undertaken on facility location and design, inventory and distribution planning, capacity and production planning and detailed scheduling. Only a small proportion of this work directly addresses the issues faced in the pharmaceutical sector. On the other hand, this sector is very much ready for and in need of sophisticated supply chain optimisation techniques. At the supply chain design stage, a particular problem faced by this industry is the need to balance future capacity with anticipated demands in the face of the very significant uncertainty that arises out of clinical trials and competitor activity. Efficient capacity utilisation plans and robust infrastructure investment decisions will be important as regulatory pressures increase and margins are eroded. The ability to locate nodes of the supply chain in tax havens and optimise trading and transfer price structures results in interesting degrees of freedom in the supply chain design problem. Prior even to capacity planning comes the problem of pipeline and testing planning, where the selection of......

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...Inventory management issues Inventory is the lifeblood of the supply chain. It is what flows from node to node. And at each node its critical to figure out that perfect balance of supply and demand or else suffer dire consequences, if you have too little inventory, you risk lost sales and customers from out of stock. If you have too much inventory, you will need more of everything, ore spaces, handling, transportation, money and labor. There are several companies that have inventory problems; one example of inventory management issues is Abercrombie. Performance has fluctuated over the past year mainly due to its inventory management issues. In early 2012, the retailer was struggling with excess inventory at its stores and had to usher in large scale promotions that weighed on its comparable store sales growth. Although the company tried to have a better control over its inventory in the subsequent months, the results remained the same. Due to a slower growth in its inventory levels, Abercrombie could not keep up with the market demand in Q1 fiscal 2013, which again dragged its comparable store sales down. Maintaining optimum inventory level is extremely important for a retailer. How the inventory is trending compared to the overall demand is something that investors should closely monitor. Abercrombie was fronting problems in managing its inventory which led to accumulation of merchandise at its stores. The retailer ushered in massive promotions which resulted in a......

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...Chapter 13 3. Briefly describe each of the costs associated with inventory. There are four basic costs associated with inventory. They are purchase, holding, transaction (ordering), and shortage costs. (1) Purchase costs is the amount paid to buy the inventory (2) Holding costs are those costs to carry an item in inventory for a length of time, usually a year (3) Transaction/ordering costs are the costs of ordering and receiving inventory (4) Shortage costs result when demand exceeds the supply of inventory 6. List the major assumptions of the EOQ model. The assumptions of the EOQ model are (1) only one product is involved (2) annual demand requirements are known (3) demand is spread evenly throughout the year so the demand rate is reasonably constant (4) lead time is known and constant, (5) each order is received in a single delivery, and (6) there are no quantity discounts 10. Under what circumstances would the amount of safety stock held be • a. Large? When large variations in lead time and/or usage is present • b. Small? Small variations in usage or lead time require small safety stock • c. Zero? When usage and lead time are constant or when the service level is 50% 11. What is meant by the term service level? Generally speaking, how is service level related to the amount of safety stock held? Service level can be defined as the probability that demand will not exceed supply during lead time. The customer service level increases as the risk of......

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Inventory

...Table of Contents Introduction 3 Answer 1: Supply Network Prospective 4 Failure to integrate the facilities 5 Vertical integration 5 Horizontal Integration: Single Company Strategy 6 Benefits: 7 Product range 7 Lack of customer consciousness and commitment to service 7 Poor internal and external communications 8 Answer 2: Customer service 9 The components of customer service 9 Answer 3: Inventory Management 11 The poor solution – the economic order quantity (EOQ) ‘fix’ 12 ABC analysis 13 Material Requirement Planning (MRP) 13 Enterprise resource planning (ERP) 14 Just-in-time management 14 Kanban 15 The effect of JIT on operations 16 Answer 4: Operations Performance Objectives 17 Quality 17 Speed 18 Dependability 19 Flexibility 20 Cost 21 References: 22 Introduction United Biscuits is a leading European manufacturer of biscuits and bagged snacks. It has 14 geographical locations in the UK with revenue of £1.1 billion in 2007. No of employees: 7,200 people in the UK Business Sector: Food manufacturing IT was founded in 1948 following the merger of two Scottish family businesses — McVitie & Price and MacFarlane Lang. In 1960, United Biscuits added to its portfolio with the acquisition of Crawford's Biscuits and MacDonald's Biscuits. In 2000 UB was bought by Finalrealm, a consortium of investors, and reverted to private limited company status. United Biscuits (UB) is one of the world’s pre-eminent branded......

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...Iowa State University Digital Repository @ Iowa State University Graduate Theses and Dissertations Graduate College 2008 Inventory management in a manufacturing/ remanufacturing hybrid system with condition monitoring Bhavana Padakala Iowa State University, bhavana4@iastate.edu Follow this and additional works at: http://lib.dr.iastate.edu/etd Part of the Industrial Engineering Commons Recommended Citation Padakala, Bhavana, "Inventory management in a manufacturing/remanufacturing hybrid system with condition monitoring" (2008). Graduate Theses and Dissertations. Paper 11925. This Thesis is brought to you for free and open access by the Graduate College at Digital Repository @ Iowa State University. It has been accepted for inclusion in Graduate Theses and Dissertations by an authorized administrator of Digital Repository @ Iowa State University. For more information, please contact hinefuku@iastate.edu. Inventory management in a manufacturing/remanufacturing hybrid system with condition monitoring by Bhavana Padakala A thesis submitted to the graduate faculty in partial fulfillment of the requirements for the degree of MASTER OF SCIENCE Major: Industrial Engineering Program of Study Committee: Sarah M. Ryan, Major Professor Jo Min Danny J. Johnson Iowa State University Ames, Iowa 2008 Copyright © Bhavana Padakala, 2008. All rights reserved. ii TABLE OF CONTENTS LIST OF FIGURES ........................................................

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Inventory

...business, it needs to keep track of the products in the firm. Keeping an accurate inventory is critical to lowering costs and providing a more streamlined operation. Traditional inventory management has largely been phased out by technologically advanced. They rely on hand-counted or electronically reported stock levels, manual order placement and storage. The SJF Auto Parts needs a computerized inventory system because of transactions they covered. In the helps of the system it makes everything from inputting information to taking inventory easier and leads for their success and growth. The owner can monitor the business at the website so that the owner can monitor at lest they can’t go to the store because of some agendas. The system's availability of sufficient products for the customers whereas function deals with monitoring the stocks of the products. Checking of stocks availability, generating and providing the reports on time, securing of important data and information.. .Primary reason to hold inventory is to offset uncertainties in demand . if demand increase and raw materials stocks run out, the production line shuts down until more materials is delivered. Likewise, a shortage of work in process means the product cannot be finish. Finally, if customers order outstrip finish good supply, the resulting stock outs could lead to lost customers. SJF auto parts suffer in the manual inventory system . Counting the amounts of Billions of auto parts to the smallest and to......

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...financial statements as of December 26, 2012 as compared to Red Robin Gourmet Burgers Incorporated’s accounting policies Abstract: An discussion of Denny’s Corporation’s accounting policies and financial statements as of December 26, 2012 as compared to Red Robin Gourmet Burgers Incorporated’s accounting policies Accounting Policies Project Part 1 Accounting Policies Project Part 1 Table of Contents Report 1 Part 1: Discussion of the Balance Sheet Part 2: Discussion of the Consolidated Statements of Income Part 3: Discussion of the Statement of Cash Flows Part 4: Discussion of the Auditor’s Opinion Part 5: Discussion of Revenue Recognition Part 6: Discussion of Accounts Receivable Part 7: Discussion of Inventory and Cost of Goods Sold Part 8: Discussion of Property, Plant and Equipment Report 2 Part 1: Discussion of Intangible Assets Part 2: Discussion of Current Liabilities Part 3: Discussion of Long-Term Debt Part 4: Discussion of Leases Part 5: Discussion of Stockholder’s Equity Part 6: Discussion of Statement of Cash Flows Part 7: Overall Evaluation Denny’s Corporation Financial Statements Notes MD&A Red Robin Gourmet Burgers Inc. Financial Statements Notes MD&A Part 1: Discussion of the Balance Sheet This section will briefly overview and list the major components of Denny’s Corporation and Red Robin Gourmet Burgers, Inc.’s Balance Sheets and then discuss any significant deviations from expected......

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...manual on all of their transaction resulting to slow service 1.2.2 Specific Problem Manual transaction makes the processing and validating of the inventory a time consuming task. -Supplies being delivered by the Supplier was counted and processed manually,And the Supplies that are being added and Out are also using manual transaction. Thus errors in counting and doing reports may be committed. 1.3 Objectives of the Study -Our main objective is to create and develop a computerized system that will help PC world in their transactions. 1.3.1 General Objective -To create a computerized Inventory System for PC World that will make the transaction easier , faster , and secure 1.3.2 Specific Objective To create a module that can easily validate and process the inventory for future use. -The proposed system has a module that will validate and process the inventory system for faster transaction To create a module that can easily know the incoming and outgoing products for the the inventory system. -The proposed system has a module that will process the incoming and outgoing products for faster transaction. 1.4 Significance of the Study -The following will be the beneficiaries of the proposed System Owner -The proposed system will help their company improved their inventory system that will provide accurately reports and faster transaction. Students -The proposed system will help them in getting idea of doing their......

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Inventory

...Company A having larger inventory than Company B. Company A (with larger inventory) will have the following advantages: * Lower ordering costs: For the raw materials they will be able to spread the fixed ordering costs over a larger amount of goods. * Quantity discounts: For the raw materials they would be better positioned to request quantity discounts because they would be ordering in bulk amounts. * Lower transportation costs: For the finished goods they will be able to reduce transportation costs because they can deliver more of the goods in one shipment versus having to deliver individual items. * Lower setup costs: For the work-in-process inventory they will be able to reduce setup costs that are incurred for switching between products. * Higher capacity utilization: With large inventory, they will be able to utilize their installed capacity to the maximum possible level. * Higher customer service: Provide better customer service by avoiding stock outs and backorders on finished goods. By avoiding these two scenarios they will be able to ensure on-time delivery. * Buffer: An excess inventory of finished goods can provide a buffer for increases in customer demand. The business is taking a risk by building and storing finished products in anticipation of customer demand, but it can reduce the lead time and improve customer satisfaction. Company B (with smaller inventory) will have the following advantages (has smaller inventory): * Less......

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Inventory

...Inventory Proposal Paper There are many organizations with inventory supplies that vary significantly during the year. The inventory system, the way in which it is managed, and the multiple outside factors that may affect the state of the inventory system have to be reviewed to ensure minimal problems arise. These issues motivate companies to create action plans and implement solutions to resolve future occurrences of the same issues and to minimize new issues. Little or plenty of inventory supply, discounts, high churn, seasonality, and weather concerns are some of the many inventory issues that may occur. This paper will present an analysis of the Winter Historical Inventory Data of the University of Phoenix campus. Due to the many concerns that the winter season can bring, a solution to respond to the possible heavy snowfall needs to be presented and executed each year. Patterns need to be reviewed that occur during each month of the year. Forecasting is one way that companies can plan for future needs. Forecasting is a valuable tool to allow for organizations to stay ahead of competitors, prepare budgets, and adapt better to change should one occur in the specific industry. Organization The University of Phoenix campus in Woodbury, Minnesota is located in an area that receives approximately fifty inches of snow on average in a year (CityTopLists, n.d.), which requires winter maintenance to ensure a safe and welcoming environment for students and family. This paper......

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Inventory

...high inventory levels - Improve production scheduling - Use correct performance metrics Exercise 4: Sessions Six and Seven Part 2: Information Requirements Determination (IRD) Complete Part 2 in Session 7 Instructions 1) Select a structured interview technique to determine supply chain information requirements at your organization. You may choose ONE of the following: a) Business systems planning (BSP) Focus on information needed to support cycle time reduction. 2) Follow the instructions below for the interview technique you selected: a) Business Systems Planning (BSP) i) Identify and describe one specific supply chain problem to be solved or decision to be made at your organization. One major supply chain problem is the overall high levels of inventory. Methods to reduce; i)Re-engineer. Major reductions - re-engineering of the order-to-delivery cycle to find ways to do it faster, better, cheaper. ii) Improve supply chain management. By streamlining the entire supply chain, a company can reduce inventory, improve time to market, compress cycle times, free up more cash, decrease costs and improve profitability. iii) Revise order cycles/quantities: Smaller and more frequent order quantities translate into fewer inventories iv) Centralize inventory: distributed warehouses require more inventory than centralized facilities. The key driver of the increased inventory......

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Inventory

...General Services Office Inventory System Chapter 1 THE PROBLEM AND ITS BACKGROUND Introduction Computer systems and applications are basic tools used for companies and even small businesses nowadays. In order to make the tasks easier and avoid time consuming, computer technologies are now a big help. It provides tools for the employees in every office for easy tracks of daily activities related to their jobs. The computer systems and applications we create plays a vital role to make the daily works made easier, less time and efforts, more productive and accurate especially in an establishments like school offices. Computerization is now the basic necessity for every establishment, yet there are also still using manual methods which make them outdated. The General Services Office (GSO) of Divine Word College of San Jose is one of the offices which used manual methods for keeping records and transactions which make them consume lot of time and effort to find and manage all the information they needed. The data and transactions may not 100% reliable because it is handwritten and or because of human error lack of detection. The General Services Office Inventory and Scheduling system is designed to give accurate data about the first in and first out items within the office and provide accurate information on day to day schedules and reservations of specific rooms to avoid errors and conflicts to a certain schedules. The personnel in charge for the system have a......

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Inventory

...CHAPTER I INTRODUCTION Background of the Study Inventory is basically the total amount of goods and materials held in stock by a factory, store and other business. An inventory system is a process whereby a business keeps track of the goods and material it has available. In its simplest sense it can be done manually by a count at the end of each day. In this way it is possible to keep a record of the goods coming in to the business and goods being sold. (Chapter 1 Inventory System, 2011) Since manual inventory consumes a lot of time and is prone to errors, it would be helpful to build a system that will computerize the transactions from acquisition of the product description to updating the inventory database. The computerized inventory system will improve employees’ work efficiency by computerizing routinely and time consuming tasks such as the time spent in taking down product information. As a result, the time can be used in more productive activities. The accuracy of the current system will also be improved, since the computerized inventory system would eliminate the need of constantly encoding lengthy details of products by having an inventory database. Monitoring encompasses the tracking of individual processes, so that information on their state can be easily seen, and statistics on the performance of one or more process can be provided. The Baguio City Hall Monitoring and Inventory System for Supplies and Properties is a proposed system to......

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Inventory

...Student Name: | Topic Reflected on: Inventory | | Date: 3/22/2015 | | Discuss important issues an accountant must consider when accounting for inventory. Make sure you explain why it is an issue.An issue an accountant must consider is whether the goods that are in transit belong to the company in inventory or the customer. This issue is related to ownership of the goods to decide whether a sale has occurred or if it remains in inventory at the end of the period. Accountants must also consider the issue of valuing of inventory. This is an issue because records must be kept consistent when recording inventory so that it is fairly valued in accordance with the accounting method chosen such as, FIFO, LIFO, or weighted average method to determine the value of inventory. The inventory method chosen can results in different amounts for the cost of goods sold. Inventory detail can be an issue as it must be accurate related to FIFO and LIFO so when selling units the correct per price point is used for each method. Shrinkage costs can be an issue if the difference in current inventory costs are drastically different from the physical count. A drastic difference means there is high human error or theft of inventory. Determining which method will affect the income of a company and the taxes a company has to pay can be an issue depending on the company. If a company is trying to pay lower income taxes, the method chosen is directly related to the economic environment. ......

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