For a purchase commitment extending beyond the current fiscal year, if the market price on the purchase date declines from the previous year-end price, the purchase is recorded at the market price.

Question

Quizplus · Accepted Answer

According to FASB ASC 330-10-35-3, if the market price on the purchase date declines from the previous year-end price, the purchase should be recorded at the lower market price.

For a Purchase Commitment Extending Beyond the Current Fiscal Year