I-Different types of inventory : II-Valuation Rule : A) Net Realizable Value

I-Different types of inventory : II-Valuation Rule : A) Net Realizable Value
of 2
All materials on our website are shared by users. If you have any questions about copyright issues, please report us to resolve them. We are always happy to assist you.
Related Documents
  Lecture 9 : Inventory evaluation I- Different types of inventory : => Stocks = important business asseta) Retail entity : - Good for resale - onsumables b) !anufacturin" entity : - ra# material - #ork in pro"ress- finis$ed "ood - consumables II- Valuation Rule : A) Net Realizable Value %R& : %et reali'able value (%R&) is a met$od of evaluatin" an assets #ort$ #$en $eld in inventory* in t$e field of accountin"+ %R& is part of t$e Generally ,ccepted ,ccountin" rinciples and International .inancial Reportin" Standards (I.RS) t$at apply to valuin" inventory+ %et reali'able value is "enerally e/ual to t$e sellin" price of t$e inventory "oods less t$e sellin" costs (completion and disposal)+It is e0pected sales price less sellin" costs Net Realizable Value (NRV) = Estimated ellin! "ri#e - $ost of $ompletion and Disposal#f A#tivity % !arket = urrent Replacement ost If urrent Replacement ost > %et Reali'able &alue (%R&)* t$en %R& is !arket+ If urrent Replacement ost 1 (%R& - %ormal rofit !ar"in)* t$en (%R& - %ormal rofit !ar"in) is !arket  % - &'y NRV  $ost of !oods  ( tor/ue use cette r2"le daccountin"3) 4- 5ama"ed "oods6- 7ne0pected fall in market prices8- Loss leader "oods- ad buyin" decisions => Solution de pr;vention* fiable mal"r; non profit ) .un"ible problem inventory 8 #ay of sellin" an inventory : .   .irst in* first out (.I.<) t$e oldest inventory is sold first Last in* first out (LI.<) t$e most recently purc$ased inventory is sold first ,vera"e cost (,&<) t$e cost of sales is t$e avera"e cost of all t$e purc$ases of inventory $) Estimate t'e invoi#e pri#e : Input ta0 : #$en you ( t$e business) buy t$e "ood <utput ta0 : #$en t$e customer buy t$e "ood!R (er !aestys Revenue and ustoms ) : <utput ta0 -Input ta0 ?normement de facteur a prendre en consid;ration : => @ransport costA andlin" cost A @a0
Related Search
We Need Your Support
Thank you for visiting our website and your interest in our free products and services. We are nonprofit website to share and download documents. To the running of this website, we need your help to support us.

Thanks to everyone for your continued support.

No, Thanks