Athina Building Supplies Ltd

First, on the basis of assumptions underlying the acceleration of the Company’s strategy refocus, management projects a decline in the net cash flows for the A2 Americas segment. As a result, in the third quarter of 2010, management has tested the long-lived assets of this segment for recoverability. They recorded a pretax impairment charge of $1.76 billion in cost of sales.

The effect of this transaction and next year’s income statement would be the ending inventory balance will increase and added in the cost of goods sold. The current period, the high value of the inventory balance will imply lower gross margins. The income tax expenses will decrease as the income tax expenses are usually proportionately depending on the company’s net earnings. In the next year, the transaction will increase in income and tax expense. Because a lot of inventories will be processed into finished goods which increase the gross sales, increasing the level of gross profit and earnings in the company. The income tax expenses and net earnings will increase.

The exception to that incremental approach is that all items (for example, discontinued operations, other comprehensive income, and so forth) be considered in determining the amount of tax benefit that results from a loss from continuing operations and that shall be allocated to continuing operations. That modification of the incremental approach is to be consistent with the approach in Subtopic 740-10 to consider the tax consequences of taxable income expected in future years in assessing the realizability of deferred tax assets. Application of this modification makes it appropriate to consider a gain on discontinued operations in the current year for purposes of allocating a tax benefit to a current-year loss from continuing

In my opinion all costs, which are necessary to produce the whisky until the product is ready for sale, should be included in the cost of the finished product. This procedure would affect the net income only in the case if the inventory changes from one year to another. But the text clearly says that “the volume of production had been the same for each of the years 1991 to 1995”, so the

Assume that interest in a new basis for cost accounting at Destin Brass Products remains high. In the following month, quantities produced and sold, activities, and costs were all at standard. How much higher or lower would the net income reported under the activity-transaction-based system be than the net income that will be reported under the present, more traditional system? Why?

Inventories, is similar to the US GAAP definition under Accounting Standards Codification, ASC 330. According to Ernst & Young (2013) article, they are both based on the principle that the primary basis of accounting for inventory is cost. Both define inventory as assets held for sale in the ordinary course of business, in the process of production for such sale or to be consumed in the production of goods or services (pg.71). This which lead to the entries above. Under U.S. GAAP, the company reports inventory on the balance sheet at the lower of expense or market, where business sector is characterized as replacement cost of$180,000, with net realizable value of $190,000 and net realizable value less a normal profit of $152,000. In this case, stock was composed down to replacement cost and provided details regarding the December 31, 2014 asset report at $180,000. A $70,000 loss was incorporated into 2014 income. The company would report inventory on the balance sheet at the lower of cost $250,000 as historical cost and net realizable value as $190,000. Inventory would have been accounted for on the December 31, 2014 asset report a net realizable estimation of $190,000 and a loss on write-down of inventory of $60,000 (the historical cost subtracted from net realizable expense) would have been reflected in net income. IFRS income would be $10,000 bigger than U.S. GAAP net pay. IFRS held earnings would bigger by the same amount.

This exaggerated write-down affected net income by decreasing the value of the inventory when the sales occurred in the following period. This would have reduced the cost of goods sold expense while sales and revenues remained unchanged by the write-down. This again shows that the Lethbridge division appears to have tried to decreases expenses in 2011 by increasing them in 2010, thereby bolstering their net income for the contest in 2011. The representational faithfulness and validity of Mitchem Lethbridge’s financial records are again brought into question because of this misleading information.

Under-IFRS (IAS-38), important to distinguish research-costs from development-costs. Development costs capitalized as assets, research costs expensed. Carroway-cool-top is in research-stage, as products developed haven't been successful, so cost $975,000 should be record as expense instead of deferred-development-cost.

Gains and losses are not included in the definition of revenues and expenses under the IFRS. According to the IFRS, gains and losses would not be included in revenue or expenses because they do constitute operating activities. The IFRS describes revenue as the “gross inflow of economic benefits arising from the ordinary operating activities”. For example, if a cleaning service experiences a gain as a result of a stock investment in the books, this should not be included as a core operating activity, rather, on the financial statements, these items would be classified

Our accounting and finances department at Atha has very strong moral standards we require employees to abide by due to the sensitivity of the information they handle and the trust needed to successfully run their position. Our finance department handles payroll, taxes, accounts payable and receivable as well as financial analysis. Each member of our finance team is put through thorough vigorous training to ensure they are able to complete their job to the fullest.

Subject: Advice on whether to accept the offer of reducing the price of signature product to $29.99 for a year.

Inventory write off can be explained but never justified. Unless the case is fire or natural

“(..) When no loss of income is expected to take place as a result of a reduction of cost prices of certain goods because others forming components of the same general categories of finished products have a market value (..) or net realizable value (..) equally in excess of cost (..) the guidance on subsequent measurement may be applied directly to the totals of the entire inventory”

However, under IFRS, Bessrawl Corporation had the option to report inventory on its December 31, 2011 balance sheet at lower of cost of $250,000 and net realizable value of $190,000. Since the net realizable value is lower than the cost, the company would have reported $190,000 on its balance sheet for December 31, 2011 and a loss of $60,000 on its income statement for the same period. Thus, under IFRS, Bessrawl Corporation income would be $10,000 larger than reporting under U.S. GAAP, stockholder equity will also be $10,000 larger under IFRS than under U.S. GAAP.

The LIFO accounting system means "last in, first out". The sales for the month were 1,100. The first step is to subtract the most recent month's production from the amount sold: 1100 850 = 250 units. All 850 units that were produced last month are not going to be on the balance sheet, because of the LIFO system. The ending inventory is going to be the 600 units from the beginning inventory, less 250 of those that were sold. The ending inventory in units therefore is 350 units. These will be listed on the balance sheet at their cost, which was $16. The cost of goods sold will be calculated on the basis of