HiYear end is 31 December. XYZ decided to change the method of valuation of raw materials from

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HiYear end is 31 December. XYZ decided to change the method of valuation of raw materials from the weighted average cost method to FIFO. Change In accounting policy has been accounted for during the current year.

FIFO Weighted Average

2020

330 000

315 000

2021

340 000

331 000

2022

370 000

345 000

SARS indicated they were prepared to accept the new valuation method. Assume a tax rate of 28%.

REQUIRED:

Disclose the change in accounting policy not.

Related Book For answer-question

Intermediate Accounting Reporting and Analysis

ISBN: 978-1285453828

2nd edition

Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach

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Posted Date: Aug 24, 2023 07:19 AM

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HiYear end is 31 December. XYZ decided to change the method of valuation of raw materials from

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When a company changes its accounting policy it is important to disclose this change in its financial statements in accordance with accounting standards and regulations The disclosure should include t... View the full answer

Intermediate Accounting Reporting and Analysis

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