L3VLUP

Inventory Step-Up

The write-up of an acquired company’s inventory from cost to fair value at the close of a deal. It passes through cost of sales as that stock is sold, usually within the first year, so it depresses the buyer’s gross margin for a quarter or two and is one of the adjustments analysts strip out of reported earnings after an acquisition.

Keep reading

IB technical questions guide

Related Accounting terms

Go further than reading

The written material is free. These are the ways to get it applied to your own work.

Browse the full glossary — 340 finance recruiting and technical terms, in plain English.