IAS 16 was adopted in 2001 to prescribe accounting treatment for property, plant and equipment. Standard applies to tangible items used in production, rental or administrative purposes. Does not apply to held-for-sale assets, agricultural biological assets or exploration assets
G&A expenses are part of operating costs excluding selling expenses. Operating expenses cover daily business operations
Businesses use weighted average, FIFO, and LIFO for inventory accounting. Weighted average assigns average production cost to specific products. FIFO assumes older inventory sold first, LIFO assumes newer inventory sold first
COGS represents direct costs of producing goods sold by a company. Includes materials, labor, and manufacturing overhead costs. Excludes indirect expenses like distribution and sales force costs
Depreciation spreads tangible asset costs over useful life for accounting and tax purposes. Companies match depreciation expenses to related revenues in same reporting period. Depreciation reduces taxable income and helps companies comply with GAAP
Accruals record revenues and expenses when cash hasn't changed hands. They ensure financial statements accurately reflect true financial position. Accruals improve financial statement quality by showing short-term credit details