allowance for reduction of inventory to market

简明释义

库存降为市价备抵

英英释义

例句

1.To comply with accounting standards, the company established an allowance for reduction of inventory to market policy.

为了遵守会计准则，公司建立了一个存货减值准备政策。

2.The allowance for reduction of inventory to market was increased due to the obsolescence of certain products.

由于某些产品的过时，存货减值准备被增加。

3.Due to recent market trends, we need to adjust our allowance for reduction of inventory to market to avoid overstatement of assets.

由于最近的市场趋势，我们需要调整我们的存货减值准备以避免资产的虚增。

4.The financial statement included an allowance for reduction of inventory to market that impacted our net income.

财务报表中包含了一个存货减值准备，这影响了我们的净收入。

5.The accountant made an allowance for reduction of inventory to market to reflect the declining value of unsold products.

会计师做了一个存货减值准备以反映未售产品的价值下降。

作文

In the world of accounting and inventory management, businesses must constantly assess their stock levels and the value of their inventory. One important concept that arises in this context is the allowance for reduction of inventory to market. This phrase refers to the adjustment made to the value of inventory when its market value falls below its cost. Essentially, it is a recognition that some inventory items may not be sellable at their original purchase price due to various factors such as changes in consumer demand, obsolescence, or market fluctuations. Understanding the allowance for reduction of inventory to market is crucial for accurate financial reporting and inventory valuation. When a company determines that its inventory is overvalued, it must create an allowance to reflect the lower market value. This adjustment ensures that the financial statements present a true and fair view of the company's assets, which is essential for stakeholders, investors, and management. For example, consider a retail store that sells electronics. If a new model of a smartphone is released, the older models may see a significant drop in demand. As a result, the market value of the older inventory may fall below its cost. In this situation, the store would need to make an allowance for reduction of inventory to market to adjust the value of its inventory on the balance sheet accordingly. Failure to do so could lead to inflated asset values and potentially mislead investors about the company's financial health. Moreover, the allowance for reduction of inventory to market impacts the income statement as well. When a company recognizes this allowance, it typically results in a loss that reduces net income for the period. This is because the expense associated with the reduction in inventory value must be recorded to reflect the economic reality of the situation. Consequently, companies must carefully monitor their inventory levels and market conditions to determine when such allowances are necessary. In conclusion, the concept of allowance for reduction of inventory to market plays a vital role in inventory management and financial reporting. It allows businesses to maintain accurate records and provide stakeholders with reliable information regarding the value of their assets. By making these necessary adjustments, companies can better navigate the complexities of market dynamics and ensure their financial statements accurately reflect their operational realities. Understanding this concept not only aids in compliance with accounting standards but also enhances decision-making processes within the organization. Businesses that effectively manage their inventory and recognize the need for adjustments will ultimately be better positioned to respond to market changes and sustain their competitive advantage in the long run.

在会计和库存管理的世界中，企业必须不断评估其库存水平和库存价值。一个重要的概念是在这种情况下出现的allowance for reduction of inventory to market（库存减值准备）。这个短语指的是当库存的市场价值低于其成本时，对库存价值进行的调整。本质上，它是对某些库存项目可能由于各种因素（如消费者需求变化、过时或市场波动）而无法以原始购买价格出售的承认。理解allowance for reduction of inventory to market对准确的财务报告和库存评估至关重要。当公司确定其库存被高估时，必须创建一个准备金，以反映较低的市场价值。这一调整确保财务报表呈现公司的资产真实和公正的视图，这对利益相关者、投资者和管理层至关重要。例如，考虑一家销售电子产品的零售商。如果新款智能手机发布，旧款可能会看到需求显著下降。因此，旧库存的市场价值可能会低于其成本。在这种情况下，商店需要进行allowance for reduction of inventory to market的调整，以相应地调整其资产负债表上的库存价值。如果不这样做，可能导致资产价值膨胀，并可能误导投资者关于公司的财务健康状况。此外，allowance for reduction of inventory to market也会影响损益表。当公司确认这一准备金时，通常会导致损失，从而减少该期间的净收入。这是因为与库存价值减少相关的费用必须记录，以反映经济现实。因此，公司必须仔细监控其库存水平和市场条件，以确定何时需要此类准备金。总之，allowance for reduction of inventory to market的概念在库存管理和财务报告中发挥着至关重要的作用。它使企业能够保持准确的记录，并向利益相关者提供有关其资产价值的可靠信息。通过进行这些必要的调整，公司可以更好地应对市场动态的复杂性，并确保其财务报表准确反映其运营现实。理解这一概念不仅有助于遵循会计标准，还增强了组织内部的决策过程。有效管理库存并认识到调整必要性的企业最终将更好地应对市场变化，并在长期内保持竞争优势。