I’m not sure if I was clear above.

If you are keeping information about the variance between standard costs and actual costs in debit or credit balance accounts (that do not meet the definition of an asset or a liability) in your information system,

These temporary accounts would always be closed to inventory at the end of the fiscal year.

Under some GAAPs, you could retain the debit or credit balance accounts for the variances on your balance sheet when you prepared interim statements.

Under IFRS, you must also close these accounts to inventory for interims.

Patricia Walters