AREAS WHERE ACCOUNTING POLICIES ARE ENCOUNTERED- • Valuation of inventories – FIFO, LIFO, weighted average etc. • Method of depreciation, depletion and amortisation – SLM, WDV method. • Treatment of expenditure during construction i.e. write off, capitalisation, deferment. • Recognition of profit on long term contracts – year to year, % completion etc. • Valuation of fixed assets – historical cost, revaluation price, exchange fluctuation etc. • Conversion or translation of foreign currency items – average rate, actual, buying rate etc. • Treatment of goodwill – write off, retain. • Valuation of investment – at cost, market or net realizable value etc. • Treatment of retirement benefits – Actuarial, funded through trust, insurance policy etc. • Treatment of contingent liabilities.
Posted on: Tue, 29 Apr 2014 06:50:00 +0000
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