Inventory accounting refers to assigning value to goods that represent future profit to the company. These goods are divided into varying stages of production and assigned a value accordingly. Constant monitoring and adjustments to these values help show an accurate statement of the company’s current asset values. The method of accounting in the United States is the generally accepted accounting principles (GAAP). Most other countries fall under the International Financial Reporting Standards (IFRS). Each has specific guidelines as to how goods are accounted for within a company.