The SEC rule (Regulation S-X)requires firms to disclose "the excess of replacement cost or current cost over stated LIFO value ..." rather than the difference between inventory book value at LIFO and inventory book value at FIFO.

Question

Quizplus · Accepted Answer

The statement correctly describes the SEC rule (Regulation S-X) that requires disclosure of the excess of replacement cost or current cost over stated LIFO value. It does not require firms to disclose the difference between inventory book value at LIFO and inventory book value at FIFO.

The SEC Rule (Regulation S-X)requires Firms to Disclose "The Excess