What is the impact of inventory write-downs on a company's tax liability? Can inventory write-downs create tax benefits?

Inventories at December 31, 2021, include write-downs to net realisable value of $592 million (2020: $239 million). Jun 23, 2020 ... The IRS held that a taxpayer using the lower of cost or market method could write down inventory unsalable at normal prices to a contract price ... You can write down the category of items and estimate the total value. Identify the type of property. For each item, write down a brief description of what it ... Sep 8, 2015 ... There are three accounting methods that permit you to deal with these inventory problems without affecting revenue. They are Inventory Reserves, Inventory ... Sep 4, 2024 ... The inventory write-off is an accounting adjustment that takes it one step further. Specifically, it is a formal recognition of inventory that ... Jun 11, 2023 ... Accounting Advisory · As a general guide, inventories are measured at the lower of cost and net realizable value (NRV). · There are several ... ... inventory method. Obsolete or damaged inventories should be written down to their lower of cost or market in the period the loss is incurred. Inventories ... Jul 24, 2015 ... The practice of writing inventories down below cost to net realisable value is consistent with the view that assets should not be carried in ... Sep 9, 2016 ... We also find that inventory write-downs are timed strategically in periods of poor performance consistent with 'big bath' incentives. We ... Dec 26, 2022 ... The Opportunistic Overproduction Hypothesis assumes that firms with REM incentives are less likely to report inventory write-downs. Our ...