Key Accounting Policies? (1 Viewer)

[mmmm.]

I have to choose a couple of accounting policies and elaborate on why the company chose that method, what would be the Key accounting policies I should look at? If it helps it's on a logistics company that distributes crates and pallets to manufacturers, etc.

So far I am looking at depreciation method and goodwill. Would these be key policies? and what other ones should I look at?

 

[Pametan]

are you also referring to inventory management?

 

[mmmm.]

are you also referring to inventory management?

Yep, I am gonna talk about why they use weighted average method for inventory

 

[Pametan]

You may wish to consider the double entry accounting method i.e. used for the balance sheet and is useful in measuring the business’s total assets and expenses. For inventory and your focus on perishability, you could use net realisable value.

 

[seremify007]

I have to choose a couple of accounting policies and elaborate on why the company chose that method, what would be the Key accounting policies I should look at? If it helps it's on a logistics company that distributes crates and pallets to manufacturers, etc.

So far I am looking at depreciation method and goodwill. Would these be key policies? and what other ones should I look at?

Depreciation method makes sense. Inventory valuation method also makes sense.

But I don't get why you'd pick goodwill?

 

[mmmm.]

Depreciation method makes sense. Inventory valuation method also makes sense.

But I don't get why you'd pick goodwill?

I think it's because I needed to pick 3 so I just went with goodwill to talk about recognition/management and Goodwill Recoverable Amount Testing (because that's what the company discussed in their annual report), however I think this section will be quite short if I pick it. What would be another/better accounting policy to choose?

 

[Pametan]

as I said I think you should use net realisable value

 

[seremify007]

I think it's because I needed to pick 3 so I just went with goodwill to talk about recognition/management and Goodwill Recoverable Amount Testing (because that's what the company discussed in their annual report), however I think this section will be quite short if I pick it. What would be another/better accounting policy to choose?

I would've picked something which has more judgement/wiggle room in it... like the financial instruments valuation, lease accounting, or even the good ol' revenue recognition.