thank you for amazing lectures but it seems I have a doubt in the example 5 with the Avco method. As you explained the the total of remaining inventory is calculated with the average cost from previous total of units. However, in the Kaplan study text they explained Avco as the remaining...
AS 2 had remained recommendatory, but has been converted as mandatory only recently. The draft seeks to address some improvements in AS 2 and incorporates the benchmark treatments of "IAS 2, Inventories." AS 2 highlights two categories of inventory, im...
goods in a state to be sold. So the extra costs are potential and have not been paid yet, is it realistic to subtract them from the inventory value? Pehraps some changeshappen in next year sales price or even the whole or part of the inventory be lost for some event. Then, haven’t...
Which of the following statements about the valuation of inventory are correct, according to IAS2 Inventories?A. The cost of goods manufactured by an entity will include materials and labour only. Overhead costs cannot be included.B. LIFO (last in, first out) cannot be used to value inventor...
Which of the following statements about the valuation of inventory are correct, according to IAS 2 Inventories? 1 Inventory items are normally to be valued at the higher of cost and net realisable value. 2 The cost of goods manufactured by an entity will include materials and labour only. Ove...
Inventory & Deferred Revenue Fair Value Measurements and Disclosures (ASC 820/IFRS 13) Goodwill or Indefinite Lived Intangible Impairment (ASC 350/IAS 36) Long-Lived Asset Impairment (ASC 360/IFRS 36) Stock Compensation (ASC 718/IFRS 2) Incremental Borrowing Rates (ASC 842/IFRS 16) Derivative ...
LIFO is a permissible valuation method under IAS 2.Average cost is recomputed following every dispatch or issue of inventory.When prices are rising, LIFO will produce the higher profit figure of all these methods.;When prices are rising, FIFO will produce the higher profit figure of all these...
Another alternative method for inventory valuation isweighted average methodwhich averages the value of inventory held at the start of the period and value of inventory purchased or produced during the period. IAS 2 allows the use of specific identification method, FIFO method and weighted average ...
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After delivery, the wholesaler bears the inventory risk and has full right of disposal over the manner and means of distribution and the selling price of the products. In the case of sales to end customers in the Group’s own retail stores, the sales revenues are recorded at the da...