FA 1 - MARK CASE STUDY: TOPIC 5 Jim is now convinced that stock cards are just designed to create extra work for accountants because you have not only calculated a different Gross Profit but have now also included a stock loss in your calculations. Paul was also surprised to find out about the stock loss as he has never lost any stock before. | Required 6 Explain to Jim that it is not the recording system that has created the alternative Gross Profit figures but the valuation system, and this is in fact only a temporary variation as a result of timing differences. Point out to Paul that the stock loss was always there and explain why it couldn't be seen in the periodic system