Tiffany and Co. is consistently conservative in its financial and accounting practices.
As required by U.S. law, Tiffany’s employs GAAP accounting, but also maintains industry norms for choices not specified by GAAP.
Tiffany’s previously used the LIFO inventory method, but has recently switched over to the Average Cost method.
The majority of competitors use the FIFO method.
Tiffany’s follows the industry-wide trend of straight-line depreciation of assets.
Due to FAS 142, Tiffany’s reviews goodwill annually to check for any impairments which may have occurred.
Tiffany’s follows the point-of-sale revenue recognition principle.
This practice does not recognize revenues until an actual purchase has been made and maintained