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By Aidan Berry, Robin Jarvis

Offers non-specialist accounting and finance scholars on enterprise reports classes with an creation to the function of accounting in a managerial atmosphere. This name displays alterations in overseas monetary Reporting criteria (IFRS).

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TV-am started paying towards the Fourth Channel on I April 1989 to fund the channel's new breakfast service. 15 16 INTRODUCTION TO ACCOUNTING future the information may have limited value for this purpose. In the real world, because of the impact of such things as changes in technology, innovations, changing fashions and inflation the past is unlikely to be a good predictor of the future. Apart from these problems there is also the question of what is and what is not included in the financial accounts.

In those cases the amount that the insurance company pays you often bears no relationship to what it would cost to replace your car, because yours was better than average or had just had a new engine put in. The problem that arises in using replacement cost is firstly that you have to want to replace the item. You may not want to replace a textbook that you used at school as it would no longer be of use to you. Even if we assume that you do want to replace the item, you may find that it is difficult to identify the replacement cost.

Sales in the years after that cannot be forecast with any accuracy. (b) A leasehold property on a five year non-renewable lease. (c) A company car. (d) A microcomputer. (e) Computer software. 3. Two brothers decided to go into business buying and selling beds. Details of their transactions are set out in the case study below. They initially bought 400 beds at £100 each and a delivery van for £6000. At the end of six months they had sold 300 of the 400 beds for £150 each. Unfortunately during that time the bed manufacturer had increased the price to £I20 each and was their only source of supply.

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