90.2K

Verified Solution

Link Copied!

please help me to answer this questions !!

1 There has been a continuous debate comparing historical cost accounting with inflation accounting This debate has further been trying to conclude the better method of inflation accounting out of Current Purchasing Power and Current Cost Accounting Discuss in detail the situations for which Current Cost Accounting is suitable for use for the management of a business, and the benefit of using it over Current Purchasing Power method (3 Marks) b) International Accounting Standard 15 is aimed at specifying the disclosures reflecting the effects of changing prices. Explain the disclosures specified by IAS 15 if a business uses Current Cost Accounting for restating the amounts in its financial statements at their current values. (3 Marks) d) Strike SAOG has provided the following extracts from its Statement of Financial Position prepared under historical cost accounting: Particulars 1-Jan-18 31-Dec-18 Stock 120,000 150,000 Accounts receivable 135,000 140,000 70000 Fixed deposit 70000 Cash 35000 48000 Accounts payable 85,000 105,000 Short term loan 25,000 50,000 Opening index: 200 Closing index: 330 Average index 170 Required: Calculate the cost of sales adjustment and monetary working capital adjustment under Current Cost Accounting? (4 Marks)

Answer & Explanation Solved by verified expert

See Answer