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| Topic: |
Business
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| Number of pages / Number of words: |
23 / 6411 |
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The remaining "backlog" or "top-up" depreciation is DEBITED from the current cost revaluation reserve, because it reflects a lower starting book value of the asset in question than is otherwise shown.
Adjustment 2: Cost of Sales
1. Find a suitable price index for the beginning of the year, end of the year and average through the year...
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Find a suitable price index for the beginning of the year, end of the year and average through the year. Convert all prices from historic dollars to index-average dollars by dividing by the index at the relevant time and multiplying by the average index.
2. Determine current cost of sales by: (opening inventory + purchases) ? closing inventory, all in adjusted current values...
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