07-13-2006, 07:54 AM
Q 1
The full name of IFRS 5 is NON-CURRENT ASSETS HELD FOR SALE..... So, i think no need to go further. If u still want to get an overview of IFRS 5 then tell me i will explain u..
Q 2
Para 38-
i) Previous year costs v value our inventory on absorption costing in the accounts. So, overheads, direct or indiret r absorbed in them. Now v value the closing stock by taking them into account. and the cost absorbed in closing inventory pertains to previous period. and in current year those stocks will be sold. so the previous years expense appears here.
ii)Unallocated production overheads These are the indirect costs, that support production process but cannot be traced in the product. Like depreciation of plant, rent of factory, pay of factory manager etc. These are also charged to cost of sales.
iii)abnormal amounts These include any abnormal losses, like the loss by fire or losses by pilferage of raw material. These are also included in cost of sales.
iv)distribution costs These distribution costs may also be included in cost of sales if borne by us. These include delivery expenses etc.
Para 39-
Very rarely it is the case. Management accounts are normally prepared under this format. But not the financial statements. But as the standard has allowed it, so a company may present profit and loss as per this format.
ask if any ambiguity....
The full name of IFRS 5 is NON-CURRENT ASSETS HELD FOR SALE..... So, i think no need to go further. If u still want to get an overview of IFRS 5 then tell me i will explain u..
Q 2
Para 38-
i) Previous year costs v value our inventory on absorption costing in the accounts. So, overheads, direct or indiret r absorbed in them. Now v value the closing stock by taking them into account. and the cost absorbed in closing inventory pertains to previous period. and in current year those stocks will be sold. so the previous years expense appears here.
ii)Unallocated production overheads These are the indirect costs, that support production process but cannot be traced in the product. Like depreciation of plant, rent of factory, pay of factory manager etc. These are also charged to cost of sales.
iii)abnormal amounts These include any abnormal losses, like the loss by fire or losses by pilferage of raw material. These are also included in cost of sales.
iv)distribution costs These distribution costs may also be included in cost of sales if borne by us. These include delivery expenses etc.
Para 39-
Very rarely it is the case. Management accounts are normally prepared under this format. But not the financial statements. But as the standard has allowed it, so a company may present profit and loss as per this format.
ask if any ambiguity....
