loss on reduction of inventory to market

简明释义

存货降低于市价损失

英英释义

A loss recognized when the carrying amount of inventory exceeds its market value, necessitating a reduction in the reported value of the inventory on the balance sheet.

当存货的账面价值超过其市场价值时确认的损失,需在资产负债表上减少存货的报告价值。

例句

1.Our accounting team needs to calculate the loss on reduction of inventory to market for the year-end report.

我们的会计团队需要计算年终报告中的存货减值损失

2.The retail sector often faces loss on reduction of inventory to market when seasonal items do not sell as expected.

零售行业在季节性商品未按预期销售时,常常面临存货减值损失

3.Investors were concerned about the loss on reduction of inventory to market reported by the electronics company.

投资者对电子公司报告的存货减值损失表示担忧。

4.During the audit, we identified a loss on reduction of inventory to market that affected our financial statements.

在审计过程中,我们发现了一项影响财务报表的存货减值损失

5.The company reported a significant loss on reduction of inventory to market due to the decline in demand for their products.

由于产品需求下降,公司报告了显著的存货减值损失

作文

In the world of business and finance, understanding various financial terms is crucial for making informed decisions. One such term that often arises in discussions about inventory management and financial reporting is loss on reduction of inventory to market. This phrase refers to the decrease in value that occurs when a company's inventory must be written down to reflect its current market value, which may be lower than its original cost. This situation can arise due to various factors, including changes in consumer demand, technological advancements, or increased competition. When a company holds inventory that is no longer selling at its expected price, it may need to adjust the value of that inventory on its balance sheet. This adjustment is necessary to provide an accurate representation of the company's financial health. The loss on reduction of inventory to market essentially reflects the financial impact of this write-down. It is important for stakeholders, including investors and creditors, to understand how this loss affects the overall financial performance of the company. For example, consider a technology company that produces smartphones. If the company has a large inventory of last year's model, but a new model has just been released with advanced features, the old inventory may not sell as well. As a result, the company may need to reduce the price of the older models to stimulate sales. This price reduction leads to a loss on reduction of inventory to market, as the inventory's book value is higher than what it can now be sold for in the market. The implications of such losses can be significant. They not only affect the company's profitability for the current period but can also influence future investment decisions. Investors typically look for companies that manage their inventory efficiently, as excessive inventory write-downs can signal poor management practices or a lack of adaptability to changing market conditions. Moreover, the loss on reduction of inventory to market can also have tax implications. In many jurisdictions, businesses are allowed to deduct these losses from their taxable income, which can provide some relief. However, consistently high levels of inventory write-downs might raise red flags with tax authorities, leading to increased scrutiny. Effective inventory management strategies can help mitigate the risks associated with loss on reduction of inventory to market. Companies can adopt just-in-time inventory systems, which minimize excess stock by aligning production closely with demand. Additionally, regular market analysis can help businesses anticipate changes in consumer preferences and adjust their inventory accordingly. In conclusion, the concept of loss on reduction of inventory to market is a vital aspect of financial reporting and inventory management. Understanding this term helps stakeholders gauge a company's operational efficiency and its ability to respond to market dynamics. By implementing sound inventory practices, businesses can reduce the likelihood of incurring such losses and enhance their overall financial stability.

在商业和金融的世界中,理解各种金融术语对于做出明智的决策至关重要。其中一个经常在库存管理和财务报告讨论中出现的术语是库存减值损失。这个短语指的是当公司的库存必须被调整为反映其当前市场价值时所发生的价值下降,这个市场价值可能低于其原始成本。这种情况可能由于多种因素引起,包括消费者需求变化、技术进步或竞争加剧。当一家公司持有的库存不再按预期价格销售时,它可能需要在资产负债表上调整该库存的价值。这一调整对于提供公司财务健康的准确表现是必要的。库存减值损失基本上反映了这一减值的财务影响。利益相关者,包括投资者和债权人,了解这一损失如何影响公司的整体财务表现是非常重要的。例如,考虑一家生产智能手机的科技公司。如果该公司拥有大量去年的型号库存,但刚刚发布了具有先进功能的新型号,那么旧的库存可能不会销售得那么好。因此,公司可能需要降低旧型号的价格以刺激销售。这一价格降低导致了库存减值损失,因为库存的账面价值高于现在在市场上可以出售的价格。这种损失的影响可能是重大的。它不仅影响公司当前期间的盈利能力,还可能影响未来的投资决策。投资者通常寻找有效管理库存的公司,因为过多的库存减值可能表明管理不善或缺乏对市场变化的适应能力。此外,库存减值损失也可能具有税务影响。在许多司法管辖区,企业被允许从应纳税所得中扣除这些损失,这可以提供一些缓解。然而,持续高水平的库存减值可能会引起税务机关的警觉,导致增加审查。有效的库存管理策略可以帮助减轻与库存减值损失相关的风险。公司可以采用及时库存系统,通过将生产与需求紧密对接来最小化过剩库存。此外,定期市场分析可以帮助企业预测消费者偏好的变化,并相应调整库存。总之,库存减值损失的概念是财务报告和库存管理的重要方面。理解这一术语有助于利益相关者评估公司的运营效率及其应对市场动态的能力。通过实施合理的库存管理实践,企业可以减少发生此类损失的可能性,并增强其整体财务稳定性。

相关单词

loss

loss详解:怎么读、什么意思、用法

reduction

reduction详解:怎么读、什么意思、用法

inventory

inventory详解:怎么读、什么意思、用法

to

to详解:怎么读、什么意思、用法

market

market详解:怎么读、什么意思、用法