college

5. Figure 9.1 Inventories majors issues Use with Financial Accounting and Reporting: A Global Perspective, 3rd Edition , ISBN 1-4080-2113-2 © 2010 H. Stolowy, M. J. Lebas and Y. Ding

7. Figure 9.2 Classification of inventories Use with Financial Accounting and Reporting: A Global Perspective, 3rd Edition , ISBN 1-4080-2113-2 © 2010 H. Stolowy, M. J. Lebas and Y. Ding

9. Table 9.1 Main categories of inventories Use with Financial Accounting and Reporting: A Global Perspective, 3rd Edition , ISBN 1-4080-2113-2 © 2010 H. Stolowy, M. J. Lebas and Y. Ding

11. Perpetual (or permanent) inventory system Use with Financial Accounting and Reporting: A Global Perspective, 3rd Edition , ISBN 1-4080-2113-2 © 2010 H. Stolowy, M. J. Lebas and Y. Ding A continuous record of changes in inventory (entries as well as withdrawals) is maintained in the Inventory account

12. Illustration Borodine Company Use with Financial Accounting and Reporting: A Global Perspective, 3rd Edition , ISBN 1-4080-2113-2 © 2010 H. Stolowy, M. J. Lebas and Y. Ding Basic data

13. Perpetual (or permanent) inventory system Use with Financial Accounting and Reporting: A Global Perspective, 3rd Edition , ISBN 1-4080-2113-2 © 2010 H. Stolowy, M. J. Lebas and Y. Ding The fundamental inventory equation is used to calculate the ending inventory as follows:

14. Periodic inventory system Use with Financial Accounting and Reporting: A Global Perspective, 3rd Edition , ISBN 1-4080-2113-2 © 2010 H. Stolowy, M. J. Lebas and Y. Ding Basis of the system: required periodic (annual) physical counting to establish the quantities in the ending inventory so that they can be valued

15. Periodic inventory system Use with Financial Accounting and Reporting: A Global Perspective, 3rd Edition , ISBN 1-4080-2113-2 © 2010 H. Stolowy, M. J. Lebas and Y. Ding The fundamental inventory equation is expressed as follows

16. Figure 9.3 Recording of inventory - impact on the financial statements Use with Financial Accounting and Reporting: A Global Perspective, 3rd Edition , ISBN 1-4080-2113-2 © 2010 H. Stolowy, M. J. Lebas and Y. Ding

19. Figure 9.4 Inventories in the income statement by nature Use with Financial Accounting and Reporting: A Global Perspective, 3rd Edition , ISBN 1-4080-2113-2 © 2010 H. Stolowy, M. J. Lebas and Y. Ding

20. 3 Costing inventories (figure 9.5) Use with Financial Accounting and Reporting: A Global Perspective, 3rd Edition , ISBN 1-4080-2113-2 © 2010 H. Stolowy, M. J. Lebas and Y. Ding

22. Table 9.3 Cost of consumption and value of remaining inventory Use with Financial Accounting and Reporting: A Global Perspective, 3rd Edition , ISBN 1-4080-2113-2 © 2010 H. Stolowy, M. J. Lebas and Y. Ding

23. Table 9.4 Impact on income statement Use with Financial Accounting and Reporting: A Global Perspective, 3rd Edition , ISBN 1-4080-2113-2 © 2010 H. Stolowy, M. J. Lebas and Y. Ding

24. Table 9.5 Impact on net income and ending inventory Use with Financial Accounting and Reporting: A Global Perspective, 3rd Edition , ISBN 1-4080-2113-2 © 2010 H. Stolowy, M. J. Lebas and Y. Ding Impact on income and ending inventory of the three methods in the context of rising or falling costs of acquisition See some other LIFO considerations in Appendix 9.3

27. Figure 9.6 End-of-year adjustments Use with Financial Accounting and Reporting: A Global Perspective, 3rd Edition , ISBN 1-4080-2113-2 © 2010 H. Stolowy, M. J. Lebas and Y. Ding

29. Table 9.7 Moussorgski: Data Use with Financial Accounting and Reporting: A Global Perspective, 3rd Edition , ISBN 1-4080-2113-2 © 2010 H. Stolowy, M. J. Lebas and Y. Ding

30. Table 9.8 Income statement by nature and by function Use with Financial Accounting and Reporting: A Global Perspective, 3rd Edition , ISBN 1-4080-2113-2 © 2010 H. Stolowy, M. J. Lebas and Y. Ding The operating income is mechanically exactly the same under both approaches

32. Table 9.9 Formulae for the calculation of the Inventory turnover in the income statement by nature Use with Financial Accounting and Reporting: A Global Perspective, 3rd Edition , ISBN 1-4080-2113-2 © 2010 H. Stolowy, M. J. Lebas and Y. Ding

33. Real-life example Inventory ratios: Toray Industries (Japan - 2008/09) Use with Financial Accounting and Reporting: A Global Perspective, 3rd Edition , ISBN 1-4080-2113-2 © 2010 H. Stolowy, M. J. Lebas and Y. Ding

39. Table 10.1 Subsequent measurement of financial assets Use with Financial Accounting and Reporting: A Global Perspective, 3rd Edition , ISBN 1-4080-2113-2 © 2010 H. Stolowy, M. J. Lebas and Y. Ding

42. Table 10.3 Data of Mozart Company’s current investment example Use with Financial Accounting and Reporting: A Global Perspective, 3rd Edition , ISBN 1-4080-2113-2 © 2010 H. Stolowy, M. J. Lebas and Y. Ding

43. Figure 10.1 Accounting for current investments – Year X1 Use with Financial Accounting and Reporting: A Global Perspective, 3rd Edition , ISBN 1-4080-2113-2 © 2010 H. Stolowy, M. J. Lebas and Y. Ding

44. Figure 10.2 Accounting for current investments – Quarter 1 of X2 Use with Financial Accounting and Reporting: A Global Perspective, 3rd Edition , ISBN 1-4080-2113-2 © 2010 H. Stolowy, M. J. Lebas and Y. Ding

45. Reporting financial asset at fair value through profit or loss Use with Financial Accounting and Reporting: A Global Perspective, 3rd Edition , ISBN 1-4080-2113-2 © 2010 H. Stolowy, M. J. Lebas and Y. Ding

48. Figure 10.3 Different categories of claims Use with Financial Accounting and Reporting: A Global Perspective, 3rd Edition , ISBN 1-4080-2113-2 © 2010 H. Stolowy, M. J. Lebas and Y. Ding

49. Figure 10.4 Doubtful accounts receivable Use with Financial Accounting and Reporting: A Global Perspective, 3rd Edition , ISBN 1-4080-2113-2 © 2010 H. Stolowy, M. J. Lebas and Y. Ding

52. Figure 10.5 Doubtful accounts – Year X1 Use with Financial Accounting and Reporting: A Global Perspective, 3rd Edition , ISBN 1-4080-2113-2 © 2010 H. Stolowy, M. J. Lebas and Y. Ding

53. Figure 10.6 Doubtful accounts - Year X2 Use with Financial Accounting and Reporting: A Global Perspective, 3rd Edition , ISBN 1-4080-2113-2 © 2010 H. Stolowy, M. J. Lebas and Y. Ding

54. Figure 10.7 Doubtful accounts - Year X3 Use with Financial Accounting and Reporting: A Global Perspective, 3rd Edition , ISBN 1-4080-2113-2 © 2010 H. Stolowy, M. J. Lebas and Y. Ding

55. Impact on income of each of the year’s entries Use with Financial Accounting and Reporting: A Global Perspective, 3rd Edition , ISBN 1-4080-2113-2 © 2010 H. Stolowy, M. J. Lebas and Y. Ding

56. Reporting accounts receivable (1/2) Brückner example – Year X2 Use with Financial Accounting and Reporting: A Global Perspective, 3rd Edition , ISBN 1-4080-2113-2 © 2010 H. Stolowy, M. J. Lebas and Y. Ding

57. Reporting accounts receivable (2/2) Brückner example – Year X2 Use with Financial Accounting and Reporting: A Global Perspective, 3rd Edition , ISBN 1-4080-2113-2 © 2010 H. Stolowy, M. J. Lebas and Y. Ding

58. 6 Recording of a sales return with direct cancellation (method 1, figure 10.9) Use with Financial Accounting and Reporting: A Global Perspective, 3rd Edition , ISBN 1-4080-2113-2 © 2010 H. Stolowy, M. J. Lebas and Y. Ding

59. Recording of a sales return with use of a contra-account (method 2, figure 10.10) Use with Financial Accounting and Reporting: A Global Perspective, 3rd Edition , ISBN 1-4080-2113-2 © 2010 H. Stolowy, M. J. Lebas and Y. Ding

62. Real-life example : Ericsson (Sweden – IFRS – 2008) Use with Financial Accounting and Reporting: A Global Perspective, 3rd Edition , ISBN 1-4080-2113-2 © 2010 H. Stolowy, M. J. Lebas and Y. Ding