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- This topic has 4 replies, 2 voices, and was last updated 7 years ago by MikeLittle.
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- August 30, 2016 at 11:51 am #336224
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 requirementsDoes this mean GAAP is an example of a regulatory framework?
August 30, 2016 at 5:02 pm #336330No, 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
August 30, 2016 at 7:43 pm #336372Thanks 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?
August 30, 2016 at 7:59 pm #336376sorry I just read the point on discount in the notes.
Thanks 🙂
August 30, 2016 at 8:35 pm #336381OK, 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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