Question 1(10 marks) Discuss the different valuation methods that a company can use to calculate the inventory issued? Which method should the company use in case of the fact that the selling price of inventory has been rising? Explain for your suggestion.

Question 2 (10 marks) Why need the company to make changes to depreciation in subsequent years? Discuss the necessary steps that a Company should follow when make changes to depreciation in subsequent years and state reason for each step.

Question 3 (10 marks) Discuss on prudence concept (reason, example). In your FA1 syllabus, which topic reflect the application of prudence concept? Discuss how the prudence concept is applied in a specific topic of FA1 sysllabus.