Slow-moving Inventory Expense
Code: 5116
👁 Views: 99
Account Information
| Financial Statement | Income Statement |
| Normal Balance | Debit |
Definition
Expense reflecting decline in inventory value due to slow movement or obsolescence, offset by allowance for slow-moving inventory on the balance sheet.
📐 IFRS vs US GAAP Accounting Treatment
IFRS
IAS 2
Inventories
US GAAP
ASC 330
Inventory
❓ Frequently Asked Questions
Q: When is slow-moving inventory expense recognized?
A: When indicators show that goods will not move within the normal period (e.g., outdated model, change in market demand).