• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

Inventory Valuation for financial reporting

Forums › ACCA Forums › ACCA MA Management Accounting Forums › Inventory Valuation for financial reporting

  • This topic has 2 replies, 2 voices, and was last updated 7 years ago by John Moffat.
Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • February 6, 2018 at 5:40 am #435416
    alikhakar
    Participant
    • Topics: 187
    • Replies: 79
    • ☆☆☆

    Which costing method is used for valuation of closing inventory for financial reporting. Since absorption and ABC costing both values inventory at full cost , which method is practically used ?

    February 6, 2018 at 5:40 am #435418
    alikhakar
    Participant
    • Topics: 187
    • Replies: 79
    • ☆☆☆

    .

    February 6, 2018 at 6:22 am #435428
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54699
    • ☆☆☆☆☆

    Paper F2 is not financial reporting – it is management accounting and there are therefore no rules as to how inventory should be valued.
    In addition, calculations involving ABC are not in the syllabus for Paper F2.

    Financial reporting is Paper F3, and for financial accounts inventory must be valued at full cost. How they arrive at the full cost (i.e. how they decided to absorb fixed overheads – the traditional approach or ABC) is up to the company – there is no financial reporting rule.
    However, absorbing overheads (whether traditional or ABC) cannot be examined in Paper F3.

  • Author
    Posts
Viewing 3 posts - 1 through 3 (of 3 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • o1lim on Discounted Cash Flow Further Aspects, Replacement – ACCA Financial Management (FM)
  • julio99 on Impairments – Impairment (CGU) – ACCA Financial Reporting (FR)
  • effy.sithole@gmail.com on EPS – diluted EPS Example – ACCA Financial Reporting (FR)
  • Ken Garrett on The Finance Function in the Digital Age – CIMA E1
  • DeborahProspect on ACCA SBR Specimen Exam 2 Question 1

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in