Our client produces off the shelf and customized hardware in the telecom and broadcasting industries. Product lines generally have a seven year sales cycle before next generation replacements are released. Routinely, components within a product line will be replaced creating an evolving subset of components within a product line.
VIP Solutions Group was engaged to evaluate our client’s policy for valuation of inventories (lower of cost or market) and establish a policy that quantitatively and qualitatively aligns with US GAAP accounting standards.