USA Inventory Turns

[chillin1212]

Can a company change the way they calculate inventory turnover or is this a change of accountancy under GAAP?

The company currently calculates inventory turns by $ but would prefer to calculate turns by pounds - something less fluctuant. Any help is appreciated, thanks.

 

[BIG E]

While footnote disclosures are required for GAAP and perhaps some change of wording to the accountant's report,
for IRS Form 3115 is required for accounting changes to inventory calculations.

 

[DrStrangeLove]

chillin1212, I think they could always disclose turns in both dollars and pounds (I'm assuming you mean the weight unit and not the British currency) in the notes, especially if they think having both measures would be more informative.