By reference to the annual report of your selected company, you are required to address the following two aspects in the business report:

1. Review the inventory disclosure of your selected company.

(Hints: your review may include the following components:

-inventory system (perpetual or periodic);

-cost assumption (FIFO, LIFO or average cost);

-the impact of cost assumption to the statement of profit and loss and

-evaluation of inventory, etc.)

2. You are required to conduct research (i. e. reviewing relevant accounting standards and policies as well as academic and professional journals), and discuss regulatory requirements and various factors that accountants should consider when setting up accounting policy relating to inventory for the entities they work for?

Answer rating: 100% (QA)

In ventory is a current asset on the balance sheet consisting of raw materials work in progress and finished goods which a company intends to sell in ... View the full answer