AC2101 S1 2014 Seminar 21 Expenses (Anil).pptx

Recognize 150 each in 20x2 20x3 3 recognize 300 in

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: with accomplishment b.  Rational and systematic allocation c.  Immediate write- off 3 Decreasing degree of matching Clicker Seminar Question 1 1.  Recognize $200 warranty expense in 20x2 & $100 in 20x3 2.  Recognize $150 each in 20x2 & 20x3 3.  Recognize $300 in 20x1 4 2 16/10/13 Matching by Allocation Systematic & rational allocation Examples: *  Cost of goods sold (Self- study P1) *  Depreciation (Self- study P2) *  Amortization (Self- study P3) 5 When to Write- off? Generally, there are 3 treatments when a firm “spends money” a.  Amount is provided for before it is incurred (PROVISION) b.  Amount is capitalized when it is incurred & then subsequently amortized (CAPITALISATION AND AMORTISATION) c.  Amount is expensed when it is incurred (WRITE- OFF) 6 3 16/10/13 When to Write- o...
View Full Document

This document was uploaded on 02/10/2014.

Ask a homework question - tutors are online