Some aspects of inventory held for sale using statements of federal accounting Standard no.3

This paper reveal some aspects of inventory held for sale according statments of federal accounting standard no.3. This statement provides accounting standards that apply to several types of tangible property, other than long term fixed assets, held by federal government agencies. The standards require historical cost or latest acquisition cost valuation of inventory held for sale and inventory held in reserve for future sale. The standards permit use of any other valuation method (e.g., standard cost) which reasonably approximates historical cost.