What is NIFO inventory valuation or costing method or to value material issue price in financial and cost accounting? // < !]> NIFO - Next in, First out is an inventory valuation technique in which issues to the production hall are valued at the current market price i.e. current cost or replacement cost instead of the cost [...]

How many inventory valuation methods are there in total? Can you list all of those methods which are used to value stock of the entity? // < !]> There are numerous valuation techniques to value the inventory or stock. However, here is the short list of those which are known. Specific identification method FIFO - First in, [...]

What does ‘caveat venditor’ or ‘let the seller beware’ mean in business and related laws? Please explain the maxim or doctrine of caveat venditor. // < !]> Exchange of goods is essential for humans to conduct their businesses and to live their daily life. Exchange of goods or services is something that is unstoppable as [...]

What does ‘caveat emptor’ or ‘let the buyer beware’ mean in business and related laws? Please explain the maxim or doctrine of caveat emptor with examples if possible // < !]> As humans cannot live in isolation and we have to depend on others for many things we are almost all the time engaged in [...]

What is the difference between penetration pricing strategy and loss leader pricing strategy. In both the strategies we drop prices or cut our profits then where are they different in their application as a marketing strategy? Please explain // < !]> There are numerous pricing strategy that has been developed by creative brains at different [...]

What are the limitations of Statement of Financial Position or Balance sheet? And how such limitations of balance sheet or statement of financial position impair the usefulness of the financial statements? // < !]> In this answer the terms Balance Sheet and Statement of Financial position are used to mean one and the same thing Statement of financial position [...]

  What are real accounts? What type of accounts are they and under what books of prime entry and ledger are they maintained? Also state the relevant accounting rule related to real accounts // < !]> There are many different ways in which accounts can be classified and types of accounts be discussed. One of [...]

  I want to know that if a non-current asset is already classified as held for sale according to IFRS 5 and is not sold even after one year has passed. Can it still be classified as held for sale in statement of financial position? // < !]> International Financial Reporting Standard - IFRS 5: Non-current [...]

  What is the recognition criteria for subsequent expenditures incurred on non-current asset? What conditions an expenditure must fulfill for recognition in the cost / carrying value of the fixed asset in the statement of financial position? // < !]> Subsequent expenditures refers to such costs which are incurred after the asset is recognized in the financial [...]

  Can you please explain whether relocation expenses are permitted to be capitalized under International Accounting Standards (IFRSs)? Like expenses of material amount incurred on relocating non-current asset. Should we capitalize in the cost or carrying amount of the asset or expense them out in profit and loss? Because my knowledge says [...]

  Is depreciation expense or depreciation cost is fixed cost or variable cost in nature? Can it be semi-variable or step cost? Please explain with relevant examples // < !]> Let’s revisit the terms Fixed cost and Variable cost and then we will discuss where depreciation cost/expense really fits. Fixed costs are such costs that do not change [...]

  How should we classify cost of goods sold? Is it inventoriable cost or period cost? I’m confused about classification of cost of goods sold. Please explain the answer in relation to the categories of cost mentioned // < !]> Before we discuss under what heading should we classify cost of goods sold, let’s first [...]

  What is contingent rent or contingent rentals under lease agreements and contracts? Also explain the accounting treatment of contingent rents under leases? // < !]> IASB’s International Accounting Standard IAS 17 defines contingent rent as follows: Contingent rent is that portion of the lease payments that is not fixed in amount but is based on the [...]

  How many types of audit report or auditor’s report are in total that can be issued by the auditor? How these audit reports differ as compared to each other. // < !]> The nature and type of reports issued by the practitioner depends on the type of assurance engagement. However we will be speaking [...]

// < !]> After the introduction of Foundations in Accountancy (FIA) - suits of qualifications, many important things have gone under the change phase and the most affected under ACCA qualification are the knowledge module exams i.e. ACCA F1, ACCA F2 and ACCA F3. This ASK TUTOR SPECIAL episode will be about understanding the changes in exam formats of ACCA [...]