BUS 320 Lecture Notes - Lecture 3: Kilogram, Financial Statement, Income Statement

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 320
• Professor: Dennis Chung

Document Summary

Ic is a publicly accountable enterprise; has to prepare financial statements in accordance with the requirements of ifrs. All dollar amounts described in the question are assumed to be material. (i) storage costs. Storage costs are included in cost of inventories only if these costs are necessary in the production process before a further production stage. The ,000 does not meet the condition as there was no further production stage involved. ,000 should be expensed in the period when incurred. And the production of ic"s micro-circuitry products involved processes that took a substantial period of time to complete. If the funds were not used directly to finance the production process or if the production of the micro-circuitry products did not take a substantial period of time, then the. ,000 has to be expensed in the period when incurred. 2 (iii) selling costs. (v) cost formula of specific identification.