Hi Mike,
As per lec note, pg 3:
A conceptual framework
• framework has been developed
defined as “a constitution, a coherent system of interrelated objectives and fundamentals which can lead to consistent standards
and which prescribe the nature, function and limits of financial accounting and financial statements”
• generally accepted accounting practice ( gaap )
• a combination of:
• each country’s own law
• international financial reporting standards
• stock exchange requirements
Does this mean GAAP is an example of a regulatory framework?
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Regulatory framework
9y ago#1No, it means that GAAP is developed and developing using the Framework as a structure within which to work
There's a good article that explains the role of the Framework here:
https://www.accaglobal.com/content/dam/acca/global/pdf/sa_mar11_f7p2.pdf
Thanks Mike.
I will appreciate if you help me with small query on valuation of inventory:
Inventory is valued at lower of Cost & NRV.
Cost includes purchase cost, conversion and others.
Purchase cost includes purchase price but excludes trade discount. Does it exclude cash discount as well?
sorry I just read the point on discount in the notes.
Thanks :)
9y ago#4OK, but when you start a new topic, please start a new thread!
Someone not interested in regulatory framework may be interested in inventory values but will miss it because of the misleading title
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