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Deere and company reported inventory in its balance sheets as follows: Inventories 1,999,100,000 What additional disclosures...

  1. Deere and company reported inventory in its balance sheets as follows:

Inventories 1,999,100,000

What additional disclosures might be necessary to present the inventory fairly?

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Answer #1

Information relative to the composition of the inventory (i.e., raw material, work-in-process, and finished goods); the inventory financing where significant or unusual (transactions with related parties, product financing arrangements, firm purchase commitments, involuntary liquidations of LIFO inventories, pledging inventories as collateral); and the inventory costing methods employed (lower-of-cost-or-market, FIFO, LIFO, average cost) should be disclosed.

If Deere Company uses LIFO, it should also report the LIFO reserve.

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