Anschaffungskosten unter Beachtung des strengen Niederstwertprinzips

19:59 Jul 1, 2013 

I finally actually get my head around it. All I could see was a huge contradiction - how do you measure (thanks) at cost and then say you were taking into account the principle of lower of cost or market value? Just didn't make sense to me at all. But of course, as has been stressed by the team Sebastian, Robin and Phil, it is strictly followed. The principle comes first, its strict application determines that for this company cost is the lower and therefore current assets are measured at cost. I was meaning to post this as a reply on Sebastian's answer, but of course, I was in the wrong box. I'll find my way around this system eventually.

"Current assets are measured at cost following the strict principle of lower of cost or market value."

13:05 Jul 1, 2013 

as there is a difference between German accounting principles and USGAAP concerning Current Assets.
In a German Balance sheet all raw materials, semi finished products, auxilliary supplies and consumables are counted, while in USGAAP only those materials, that actually get sold in the end and create cash flow are taken into account.
There's a German Wikipedia article on this... hope it helps:

https://de.wikipedia.org/wiki/Umlaufvermögen

So this might call for a comment, explaining that difference, to avoid misconceptions...
Lower of cost or market value makes sense in German, but might not sound correct for someone with a USGAAP Background...