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ASU 2015-11, Simplifying the Measurement of Inventory

FASB amendment that separates the lower of cost and NRV path from the retained lower of cost or market path for LIFO and retail method inventory.

Authority and currency

About this authority

Publisher
Financial Accounting Foundation
Standing
Primary authority
Version
Accounting Standards Update 2015-11
Relevant parts
Summary; amendments to Topic 330; transition paragraph 330-10-65-1; basis for conclusions
Currency
current · checked Aug 8, 2026

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For inventory measured by methods other than LIFO or the retail inventory method, ASU 2015-11 replaced the former market comparison with net realizable value. Inventory measured using LIFO or the retail inventory method retains the separate lower-of-cost-or-market route. The module keeps those populations apart before doing either calculation.