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?

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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