Change in inventory

Guys, I'm facing a funny situation.

A company we're working on the behalf of is reporting its change in inventory in its CoGS, leading to funny (and extremely volatile) values. Typical example? A negative CoGS for a subsidiary.

Can you confirm it should be reported separately on the CFS? I've actually read that it seems to be common practice (the SEC has a guideline for that)... How do you guys handle it? Scrub the numbers?

2 Comments
 

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