Questions & Answers
Are income tax advances financial instruments?
Question We paid significant amount of cash as advances for income tax liabilities in accordance with our tax legislation. Are these prepayments for tax financial assets? Should we include them in expected credit loss calculation? If not, what standard shall we apply? Answer No,…
Journal entries – finished goods
Question When you produce finished goods from raw materials, labour and other items, what are the journal entries to reflect that? For example, in the lecture #5 Solved Examples in Inventories section, you calculated the cost of one unit of finished product as follows: Item…
Testing goods: inventories, expense or PPE?
Question I work with an antivirus software company in the cybersecurity industry. 95% of our sales are software but we also sell some hardware products. For the hardware products, we use some units as “proof of concept” stock; our Sales Engineers ship to our customers…