ORBK » Topics » FAS 151 Inventory Costs-an amendment of ARB 43, Chapter 4

This excerpt taken from the ORBK 20-F filed Mar 30, 2006.

FAS 151 Inventory Costs—an amendment of ARB 43, Chapter 4

 

In November 2004, the FASB issued FAS No. 151, “Inventory Costs—an amendment of ARB 43, Chapter 4” (“FAS 151”). This Statement amends the guidance in ARB No. 43, Chapter 4, “Inventory Pricing”, to clarify the accounting for abnormal amounts of idle facility expense, freight, handling costs and wasted material, requiring that these items be recognized as current-period charges. In addition, FAS 151 requires that the allocation of fixed production overheads to the costs of conversion be based on the normal capacity of the production facilities. FAS 151 is effective for inventory costs incurred during fiscal years beginning after June 15, 2005 (January 1, 2006 for the Company); however earlier application of FAS 151 is permitted. The provisions of FAS 151 are to be applied prospectively. The Company does not expect FAS 151 to have a material effect on its financial statements or its results of operations.

 

This excerpt taken from the ORBK 20-F filed Apr 21, 2005.

FAS 151 Inventory Costs—an amendment of ARB 43, Chapter 4

 

In November 2004, the FASB issued FAS No. 151, “Inventory Costs—an amendment of ARB 43, Chapter 4” (FAS 151). This Statement amends the guidance in ARB No. 43, Chapter 4, “Inventory Pricing”, to clarify the accounting for abnormal amounts of idle facility expense, freight, handling costs and wasted material, requiring that these items be recognized as current-period charges. In addition, this Statement requires that the allocation of fixed production overheads to the costs of conversion be based on the normal capacity of the production facilities. This Statement will be effective for inventory costs incurred during fiscal years beginning after June 15, 2005 (January 1, 2006 for the Company); however earlier application of FAS 151 is permitted. The provisions of this Statement shall be applied prospectively. The Company does not expect this Statement to have a material effect on its financial statements or its results of operations.

 

F-14


ORBOTECH LTD.

 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

 

EXCERPTS ON THIS PAGE:

20-F
Mar 30, 2006
20-F
Apr 21, 2005
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