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HiYear end is 31 December. XYZ decided to change the method of valuation of raw materials from the weighted average cost method to FIFO. Change
HiYear end is 31 December. XYZ decided to change the method of valuation of raw materials from the weighted average cost method to FIFO. Change In accounting policy has been accounted for during the current year.
FIFO Weighted Average
2020
330 000
315 000
2021
340 000
331 000
2022
370 000
345 000
SARS indicated they were prepared to accept the new valuation method. Assume a tax rate of 28%.
REQUIRED:
Disclose the change in accounting policy not.
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When a company changes its accounting policy it is important to disclose this change in its financial statements in accordance with accounting standards and regulations The disclosure should include t...
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Intermediate Accounting Reporting and Analysis
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
2nd edition
9781305727557, 1285453824, 9781337116619, 130572755X, 978-1285453828
