Revision question on financial accounting – IAS 2 (Esinam ltd)

Expectation gap in auditing - meaning

Esinam Ltd has the following products in inventory at the end of 2016:

Units Cost per unit Tsh
Ahomka (completed) 5,400 22
Adonko (part complete) 2,800 26

Each product normally sells at Tsh 34 per unit. Due to the difficult trading conditions, Esinam Ltd intends to offer a discount of 15% per unit and expects to incur Tsh 4 per unit in selling costs. Tsh 10 per unit is expected to be incurred to complete each unit of Adonko. read more

Difference between job costing and batch costing

Situations where negative confirmation is more suitable for collecting audit evidence than positive confirmation.

Job costing is defined as a method of recording the costs of a manufacturing job, rather than process. With job costing systems, a project manager or accountant can keep track of the cost of each job, maintaining data which is often more relevant to the operations of the business. read more

Revision question on financial accounting – Delali ltd

Revision question on financial accounting - Delali ltd

Delali Ltd adopts revaluation model for subsequent measurement of its intangible assets in accordance with IAS 38: Intangible assets. The policy of Delali is to revalue its intangible asset at the end of each year. An intangible asset with an estimated useful life of 9 years was acquired on 1 January 2016 for GH¢45,000. It was revalued to GH¢54,400 on 31 December 2016 and the revaluation surplus was correctly recognized on that date. As at 31 December 2017, the asset was revalued at GH¢32,000. read more

Revision question on Financial accounting – IAS 2.


The objective of IAS 2 Inventories is to prescribe the accounting treatment for inventories and provide guidance for measuring and valuation of inventories. It determines the cost of inventories and subsequent recognition as an expense, including any write-down to net realisable value. read more