ABFA1023 Research Sample 1
ABFA 1023 FUNDAMENTALS OF ACCOUNTING
COURSEWORK 1 (RESEARCH ASSIGNMENT)
9 Oct 2010
SAMPLE 1
1.
Introduction
In completing this assignment, we have conducted our research on “Inventories” by reading some textbooks in the library and some relevant articles from the internet. In the following sections, we will report our findings on the various definitions of the terms involved and explain our understanding of the topic researched, through the use of illustratations.
2.
Definitions
Paragraph 6 of the Financial Reporting Standard 102 Inventories (Malaysian Accounting
Standards Board, 2010) provides the following definitions:
Inventories are assets:
a)
held for sale in the ordinary course of business;
b)
in the process of production for such sale; or
c)
in the form of materials or supplies to be consumed in the production process or in the rendering of services.
Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.
Paragraph 9 of the Financial Reporting Standard 102 Inventories (Malaysian Accounting
Standards Board, 2010) stipulates that inventories shall be measured at the lower of cost and net realisable value, where the cost of inventories (paragraph 10) shall comprise all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition.
1
ABFA 1023 FUNDAMENTALS OF ACCOUNTING
COURSEWORK 1 (RESEARCH ASSIGNMENT)
9 Oct 2010
SAMPLE 1
According to Sangster and Wood (2008, p.343-344), when using the First in, First Out method, the first items to be received are the first to be issued, whereas, when using the
Average cost method, with each receipt of goods the average cost for each item is recalculated. Paragraph 25 of Financial Reporting Standard 102 Inventories (Malaysian Accounting
Standards Board, 2010) stipulates that the cost of inventories shall be assigned
COURSEWORK 1 (RESEARCH ASSIGNMENT)
9 Oct 2010
SAMPLE 1
1.
Introduction
In completing this assignment, we have conducted our research on “Inventories” by reading some textbooks in the library and some relevant articles from the internet. In the following sections, we will report our findings on the various definitions of the terms involved and explain our understanding of the topic researched, through the use of illustratations.
2.
Definitions
Paragraph 6 of the Financial Reporting Standard 102 Inventories (Malaysian Accounting
Standards Board, 2010) provides the following definitions:
Inventories are assets:
a)
held for sale in the ordinary course of business;
b)
in the process of production for such sale; or
c)
in the form of materials or supplies to be consumed in the production process or in the rendering of services.
Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.
Paragraph 9 of the Financial Reporting Standard 102 Inventories (Malaysian Accounting
Standards Board, 2010) stipulates that inventories shall be measured at the lower of cost and net realisable value, where the cost of inventories (paragraph 10) shall comprise all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition.
1
ABFA 1023 FUNDAMENTALS OF ACCOUNTING
COURSEWORK 1 (RESEARCH ASSIGNMENT)
9 Oct 2010
SAMPLE 1
According to Sangster and Wood (2008, p.343-344), when using the First in, First Out method, the first items to be received are the first to be issued, whereas, when using the
Average cost method, with each receipt of goods the average cost for each item is recalculated. Paragraph 25 of Financial Reporting Standard 102 Inventories (Malaysian Accounting
Standards Board, 2010) stipulates that the cost of inventories shall be assigned