I ran into a situation where a company takes a physical inventory (serially manufactured products) annually. In its interim statements, it would like to omit the change in inventory from its cost of sales calculation (since including it would require a physical inventory in the interim). Assuming it publishes condensed interim statements, would this be acceptable? Or should it estimate the change? If so, any suggestions as to how?
(sorry if this was posted twice, the firs time I got a server timeout).