Upcoming Events
AASBB SIte Visitors
Currently viewing the comment posted by user's . | Back to Topic | Login
| Reader Comments on :: BAS | |
| You revealed that exceptionally well. best generic drugs cialis cialis baratos compran uk Cialis pills cialis generico in farmacia Cialis 5 mg where to buy cialis in ontario online cialis Cialis prices we use it 50 mg cialis dose Cheap cialis cialis 50 mg soft tab cialis reviews Purchasing cialis on the internet price cialis wal mart pharmacy <a href="http://cialisvipsale.com/#">Cialis from canada</a> http://cialisyoues.com/ Cialis online Low cost cialis 20mg Buy cheap cialis no prescription Buy cheap cialis in canada Low cost cialis 20mg Posted By: RichardWhalp Posted on: 2018-05-15 11:57:13 | |
| 1. The date of a transaction is the date on which the transaction first qualifies for recognition in accordance with BASs (para 22 of BAS 21). If an entity pays 100% advance before the delivery of goods, the transaction first qualifies for recognition in the books of accounts when the advance payment is made. 2. Inventory is to be valued at lower of cost and net realizable value. Irrespective of whether inventory is held for sale or self consumption, an entity may ascertain relevant methodology to determine NRV or refer to most recent pronouncement of other standard setting bodies that use a similar conceptual framework to develop accounting standards (industry practices). Thereupon, make a comparison between the Cost (Specific Identification of Cost or FIFO, Weighted Average Cost method) and NRV whichever is lower. Posted By: Sonam Wangdi Posted on: 2018-05-15 11:57:13 | |
| First step is to think about the Going Concern concept (clauses 25 & 26 in BAS 1 Presentation of Financial Statements). If the company is behind with bank loans and rent, it may be forced to shut business and stock will get sold off at a big discount or auction at whatever bidders are prepared to offer. If the company is a going concern, inventories will be sold at the standard price. This means there will be a profit on the sale which will pay all the other costs. This is a sale in the "the ordinary course of business" that BAS 2 applies to. Inventory comes in three main types, finished goods, raw materials and spares. Each category gets further away from a sale. Finished goods (retail, wholesale and finished goods of a manufacturer) are sold directly and aren't subject to any change before sale. For raw materials, inventory items a, b and c go through a manufacturing process to produce product X which is what is sold. Spares are used to keep the machinery used in the manufacturing process operative so that product X can be made. All three types of inventory end up in the Cost of Goods Sold when they are used. Since we have passed the Going Concern test, we are sure that the sale proceeds are more than the Cost of Sales. We can value our inventory at cost. The "lower of cost or net realisable" test will only apply to particular items of inventory. The bulk of our the inventory must be sellable at full price for us to meet the Going Concern test. However some of our inventory may have to be sold at a reduced price - its out of fashion or another company has a competing product that is better, cheaper etc, we have a new machine so the spares are redundant. These are the items that we need to compare selling price and the cost. If there is no or negative margin, then we need to use the "net realisable" method. This may mean working backwards from the reduced selling price to give a value of inventory/cost of goods sold that is acceptable. Inventory in the "net Realisable" category need judgement skills - first to identify and then to calculate what the net realisable value is. Those skills are a fact of life and are a basic part of accounting using BAS. BAS 1 has a section on Sources of estimation uncertainty (clauses 125 to 133) that discuss the issue. Posted By: Roy Whittington Posted on: 2018-05-15 11:57:13 | |
| Notification on clarification on Bhutanese Accounting Standards , in this connection I would further like to seek clarification of following points, 1. This is with reference to point no. 6 Goods are procured with 100% payment Here , I want to clarify what is meant by the Intial recognition, i mean in this case what is the date of transaction , the date the advance is released or the date the good is delivered. 2. This is with reference to point no. 12 How do we determine Market value of stocks at the end of reporting period? As per BAS 2 Inventory is to be valued at the lower of cost and net realizable value, and net realizable value is further referred to as the net amount that an entity expects to realize from the sale of inventory in the ordinary course of business, so for companies where inventory is maintained for self consumption and not for sale but for self consumption , so based on the definition above , are we required still to value inventory at Lower of cost and NRV or continue to reflect inventory at cost and not at NRV. Posted By: Sonam Choeden Posted on: 2018-05-15 11:57:13 |
You must be logged in to create new topics and to make comment on others comments. Login
Your comments will be read, verified and approved by Administrator