IFRS 5

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Benipuri
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Joined: 23 Feb 2020, 18:25

IFRS 5

Post by Benipuri »

Hi, Marek,
What is difference between cost of sale and cost of disposal.

Thanks
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Marek Muc
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Re: IFRS 5

Post by Marek Muc »

Hi, why ask me only instead of the whole community? ;)
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Marek Muc
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Re: IFRS 5

Post by Marek Muc »

IAS 2.38:
The amount of inventories recognised as an expense during the period, which is often referred to as cost of sales, consists of those costs previously included in the measurement of inventory that has now been sold and unallocated production overheads and abnormal amounts of production costs of inventories. The circumstances of the entity may also warrant the inclusion of other amounts, such as distribution costs.
IAS 36.6
Costs of disposal are incremental costs directly attributable to the disposal of an asset or cash‑generating unit, excluding finance costs and income tax expense.
IFRS 5 uses costs to sell in the same meaning and IAS 36 uses costs of disposal (IFRS 5 appendix A)
Costs to sell - The incremental costs directly attributable to the disposal of an asset (or disposal group), excluding finance costs and income tax expense.
JRSB
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Re: IFRS 5

Post by JRSB »

:lol: :lol:
Student of IFRS.
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