Answer
Relevant information to be disclosed may include:
1. Information relative to the composition of the inventory (i.e., raw material, work-in-process, and finished goods)
2. Inventory financing where significant or unusual (transactions with related parties, product financing arrangements, firm purchase commitments, involuntary liquidations of LIFO inventories, pledging inventories as collateral)
3. The inventory costing methods employed (lower of cost or market, FIFO, LIFO, average cost) should be disclosed.
Work Step by Step
If Deere and Company uses LIFO, it should also report the LIFO reserve.
