Question

A company will disclose the inventory valuation method

In a summary of significant accounting policies footnote

In a separate footnote for other noteworthy items

In a subsequent events footnote

On the face of the balance sheet

Answer 1

A company will disclose its inventory valuation method in a summary of significant accounting policies footnote

In order to fairly present the financial statements company's adopt specific accounting principles and methods it considers appropriate in the present circumstances. Such disclosures help the users of financial statement to understand the policies of the company and thus , disclosure of method of inventory valuation is one of the key area of significant accounting policies.