What is Specific identification method of inventory valuation?

Specific identification method is just another method to value ending inventory of the business to be reported in the financial statements. IAS 2 permits the use of specific identification method. According to this method each...

What is Double declining balance method of depreciation?

Before we discuss Double Declining Balance method, lets have a review of basic Declining Balance method and understand how it works. Declining balance method: a type of accelerated depreciation method Declining Balance method or reducing balance...

What are different inventory valuation methods?

There are numerous valuation techniques to value the inventory or stock. However, here is the short list of those which are known. To learn more about each method, click the name! Specific identification method FIFO -...

When training costs can be capitalized?

It is correct that International Accounting Standards and especially IAS 16 Property, Plant and Equipment has specifically ruled out the capitalization of any expenditure incurred on training costs. You can read in more detail...

Can we capitalize Tax amounts?

According to IAS 16 the purchase price of the asset includes the amount of non-refundable taxes i.e. such taxes which cannot be claimed back are capitalized and are included in the cost of the...

What is meant by Economic benefits and how they flow to the entity?

It is easy to understand that entities around the world hold different sets of machinery, plant, equipment, building, land and other kinds of assets through which it offers products or services to its customers and...

What is Income approach to fixed asset revaluation?

After initial recognition at cost if the carrying value of an item (of property, plant and equipment) is significantly different from the value measured on fair value basis then revaluation of asset is required....

What is meant by ‘net of’ in accounting or tax and other business related...

The expression 'net of' represents the exclusion of something from a particular sum. For example net of tax means the resultant amount which is exclusive of tax or in other words the amount we get...

What is the difference between Product cost and Period cost?

Product costs or Inventoriable costs are all such costs that form part of the inventory.These are basically such costs that relates directly to the products and are incurred to produce such products and...

What is Folio coloumn and its use?

Folio, as in its literal meanings also, means a sequence of number of words for the purposes of dividing a book into meaningful parts or just for reference. Same goes for its use in accounting...