FIFO is the acronym for First-In, First-Out. It is a cost flow assumption usually associated with the valuation of inventory and the cost of goods sold. Under FIFO, the oldest costs will be the first costs to be removed from the balance sheet account Inventory and will be the first costs to be included in the cost of goods … Read the rest
The following are the list of updated international accounting standards (IAS) in 2020:
- IAS 1 – Presentation of financial statements.
- IAS 2 – Inventories.
- IAS 7 – Statement of cash flows.
- IAS 8 – Accounting policies, changes in accounting estimates and errors.
- IAS 10 – Events after the reporting period.
- IAS 12 – Income taxes.
- IAS 16 – Property,
Esinam Ltd has the following products in inventory at the end of 2016:
|Units||Cost per unit Tsh|
|Adonko (part complete)||2,800||26|
Each product normally sells at Tsh 34 per unit. Due to the difficult trading conditions, Esinam Ltd intends to offer a discount of 15% per unit and expects to incur Tsh 4 … Read the rest
IAS 2 inventories was first issued on October 1975, and most recently revised in December 2003. Its most important principle is that inventories to be measured at lower of their cost and net realizable value. Cost is defined as cost of purchase, cost of conversion, plus any cost that are incurred in bringing the inventory items to their present location and condition.
Inventory… Read the rest
IAS 2 Inventories was first issued in October 1975, and most recently revised in December 2003. its most important principle is that inventories be measured at lower of their cost and net realizable value.
Net realizable value (NRV) is calculated as the expected sale proceeds less any selling cost to be incurred in achieving the sale proceed. If there is further work to … Read the rest