David William

The advantages of the LIFO method are based on the fact that prices have risen almost constantly for decades. LIFO supporters claim this upward trend in prices leads to inventory, or paper, profits if the FIFO method is used. During periods of inflation, LIFO shows the largest cost of goods sold of any of the costing methods because the newest costs charged to cost of goods sold are also the highest costs. The larger the cost of goods sold, the smaller the net income.

Those who favor LIFO argue that its use leads to a better matching of costs and revenues than the other methods. When a company uses LIFO, the income statement reports both sales revenue and cost of goods sold in current dollars. The resulting gross margin is a better indicator of management’s ability to generate income than gross margin computed using FIFO, which may include substantial inventory (paper) profits.

Supporters of FIFO argue that LIFO (1) matches the cost of goods not sold against revenues, (2) grossly understates inventory, and (3) permits income manipulation.

The statistical value is the cost of the item within the borders of Finland with some additional costs, such as freight and insurance, if they are not included in the trade price. When necessary, deliveries free of charge not included in the price, are also added to the statistical value.

The value of partly or completely gratuitous goods is determined according to the price that would be acquired upon selling the goods.

Exchange rates confirmed by Customs are applied when determining the statistical value in export. The statistical value is given in euros.

Under certain circumstances, the EUR.1 movement certificate can be submitted retrospectively for the goods mentioned in the certificate, if it was not issued at the time of exportation because of errors, involuntary omissions or special circumstances, or it is demonstrated to the satisfaction of the customs authorities that an EUR.1 movement certificate was issued but was not accepted at importation for technical reasons.
An EUR.1 movement certificate issued retrospectively shall in box 7 be endorsed with the following phrase: ‘ISSUED RETROSPECTIVELY’.

CAP puts import controls on food, agricultural and horticultural products and their derivatives. Excise charges are extra duty on things like alcohol, tobacco, and hydrocarbon fuels.

The EC-Turkey Associate Trade Agreement (ATR) is a special agreement that applies mainly to industrial goods. It removes Customs Duty on goods which arrive from Turkey into the UK under the current EU ATR scheme (and vice versa). To qualify, the goods can be of any origin, but they must be in free circulation, meaning imported into Turkey/UK and all duties paid.