Siemens AG: Please read the below information and answer the questions: Presented below are excerpts from the 2018 annual report of Siemens AG, a German company that operates in numerous industries, including technology, power generation, and medical diagnostics. Note 11 Inventories Cost of sales includes inventories recognized as expense amounting to 57,029 million and 57,176 million, respectively, in fiscal 2018 and 2017. Compared to prior year, write-downs increased (decreased) by (19) million and 15 million as of September 30,2018 and 2017. Source: Siemens AG 2018 annual report (provided in assignment 3 on Canvas). Required: 1, The Siemens AG followed which accounting framework in 2018 annual report? Please provide the most direct evidence in the annual report that support your argument. (1 marks) 5 2, Under this accounting framework that Siemens AG follow, what are all the cost flow assumptions of inventory that are allowed to use? What are they? Please explain the definition of each cost flow assumptions that allowed to use under this framework. ( 3 marks) 3, Assume in 2018 Germany experienced a deflationary economy, and the manager had a high motivation to reduce tax payment of the firm. Which cost flow assumptions the manager will select to record the cost of inventory to help pay less tax? Why? ( 3 marks) Siemens AG: Please read the below information and answer the questions: Presented below are excerpts from the 2018 annual report of Siemens AG, a German company that operates in numerous industries, including technology, power generation, and medical diagnostics. Note 11 Inventories Cost of sales includes inventories recognized as expense amounting to 57,029 million and 57,176 million, respectively, in fiscal 2018 and 2017. Compared to prior year, write-downs increased (decreased) by (19) million and 15 million as of September 30,2018 and 2017. Source: Siemens AG 2018 annual report (provided in assignment 3 on Canvas). Required: 1, The Siemens AG followed which accounting framework in 2018 annual report? Please provide the most direct evidence in the annual report that support your argument. (1 marks) 5 2, Under this accounting framework that Siemens AG follow, what are all the cost flow assumptions of inventory that are allowed to use? What are they? Please explain the definition of each cost flow assumptions that allowed to use under this framework. ( 3 marks) 3, Assume in 2018 Germany experienced a deflationary economy, and the manager had a high motivation to reduce tax payment of the firm. Which cost flow assumptions the manager will select to record the cost of inventory to help pay less tax? Why? ( 3 marks)