China Growth Stocks

[bradford86]

LPH email from toups

Glen,

You ask a good questions. Our inventory is tracked on a weighted average cost basis. See the disclosure below from our 10K:

Inventory

Inventories are stated at the lower of cost, determined on a weighted average basis, or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business less the estimated cost of completion and the estimated costs necessary to make the sale.

When inventories are sold, their carrying amount is charged to expense in the year in which the revenue is recognized. Write-downs for declines in net realizable value or for losses of inventories are recognized as an expense in the year the impairment or loss occurs. There were no declines in net realizable value of inventory for the years ended June 30, 2010 and 2009.

Thanks, Mike


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Mike,

Read this on a message board, was curious if Longwei did FIFO/LIFO in terms of keeping track of the cost of their inventory or possibly average cost of inventory in tanks?

If this is a stupid question, just ignore it.

Glen