Comparator Types

General Information

Comparator types are commonly used as a method of evaluating the value of an asset, in the field of inventory accounting. This functionality enables creating different types of comparators such as the Net Realizable Value (NRV), Provision etc. allowing you to compare inventory values with other comparators.

For example NRV is the estimated selling price in the ordinary course of business, after the estimated cost of completion and the estimated costs necessary to make the sale, have been deducted.

Example:

	Amount
Estimated selling price in the ordinary course of business	$100.00
Less
Estimated cost of completion &  the estimated cost necessary to make the sale	$10.00
Net Realizable Value (NRV)	$90.00

Purpose and Area of Use

Comparator types and their defined values, will help you to find out the necessary adjustments that need to be done in the financial ledgers in order to be compliant with different financial reporting standards such as the International Financial Reporting Standard (IFRS). A report of comparison can also be generated to compare different comparator values and the inventory values of the relevant parts.

Note: IFRS is a series of pronouncements, published by the International Accounting Standard Board (IASB).       

Key Functions

Given below are the three main functions that involve comparator types in the system:

• Entering comparator types - This function predefines comparator types of your choice for companies connected to a site.

• Connecting comparator types and defining comparator values - Connecting preferred comparator types to appropriate inventory parts and defining values for them are done using this function.

• Printing comparison reports - This function gives you the option to print a report of comparison between the inventory cost of a part and its comparator values.