2009 International Accounting Standards Board (IASB® ) IFRS for SMEs ® International Financial Reporting Standard (IFRS®) for Small and Medium-sized Entities (SMEs) International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs) The International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs) is issued by the International Accounting Standards Board (IASB), 30 Cannon Street, London EC4M 6XH, United Kingdom. Tel:
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PART 3A COST MEASUREMENT CONCEPTS 457 QUESTIONS [1] Source: CMA 0690 5-27 Costs that arise from periodic budgeting decisions that have no strong input-output relationship are commonly called A. Committed costs. B. Discretionary costs. C. Opportunity costs. D. Differential costs. [Fact Pattern #1] The estimated unit costs for a company using absorption (full) costing and planning to produce and sell at a level of 12,000 units per month are as follows.
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Chapter 16: Cost concepts, Cost behaviour and CVP Analysis Organisational Framework • Organisations can be classified into one of three categories: 1) Manufacturing: produce goods by converting raw materials into a physical product through the use of labour and capital inputs. Usually sell G to merchandising or other manufacturing firms 2) Merchandising: Buy goods already made and then sell them to consumers or other merchandising firms. Selling directly to consumers (retailers) selling to
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statements. We view overhead as two types of costs and define them as follows: 1. Manufacturing overhead (also referred to as factory overhead, factory burden, and manufacturing support costs) refers to indirect factory-related costs that are incurred when a product is manufactured. Along with costs such as direct material and direct labor, the cost of manufacturing overhead must be assigned to each unit produced so that Inventory and Cost of Goods Sold are valued and reported according to generally
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requirements under IFRS have changed the way airlines account for frequent flyer points. In the past, the cost/provision approach accounting practices were used. Under this method, the upfront sale of points to bank, credit card companies, mortgage brokers, and general retailers was recorded as revenue in the income statement at the time of sale. The expense related to the sale, that is the cost of travel, was recorded at a later period, when the airline provided the travel service, or gave up the
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period, the firm using this method would have the highest cost of goods sold, the lowest net income and lowest inventory value. FIFO: First in, first out, or FIFO, refers to the practice of recognizing a sale as being made up of inventory that was purchased earlier and having the lowest cost. During rising prices, firm using FIFO will have lowest cost of goods sold, the highest net income and the highest inventory value. FIFO reporting leads to higher current asset value and higher net income
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23% but has also experienced a decrease in royalty revenue by 42% since 2011. The income statement also shows a higher cost of production over a three year period. In 2011 the cost of goods sold was represented by 33%, however, two years later, the same cost of goods sold was 35% of revenue. Through the purchase of Spire Semiconductor, Masimo expects to see better production costs in the future. As is often the case with medical technology, Masimo has chosen not to express future expectations;
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CHAPTER 4 Posted with permission from John Wiley & Sons Canada, Ltd. Reporting Financial Performance ASSIGNMENT CLASSIFICATION TABLE | |Brief Exercises | | |Writing Assignments | |Topics | |Exercises |Problems | | | |Income measurement concepts. | |
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of the process that results in the preparation and reporting of financial statments. The Bookkeeping activity is an important subdivision of financial accounting. Bookkeeping is the process of accumulating the financial results of an entity's activities. 2. Managerial Accounting consists of the use of economic and financial information to plan and control many activities of the entity and to support the management decision-making process. Cost Accounting is a subset of managerial accounting that
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investments: represents the reported values of shares of other companies as investment of access cash c. Trade receivables: When a company sells it products on credit, and receives promises to get back. d. Inventories: refers to the goods which used to produced products and services on credit. e. Prepayments: Prepayments are the advanced payment of any insurance premiums that reflect future economic benefits. f. Other current assets 2. Non-current assets (long-term)
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