06-05-2009, 02:20 PM
Faisal bhai kia prudence concept matching concept and consistency concept k khilaf nai hy?
Because expected loses are belong to near future. While matching cencept allows us to record income and expenses that are related to each accounting period that are totally comsumed and occured. And consistency concept allows us to regulate same accountin policy year after year. While as for as inventory valuation is concerned, inventory is recorded on cost or NRV which is lower. Some times inventory is recorded on NRV and some time on Cost. Is not against the consistency concept.
Because expected loses are belong to near future. While matching cencept allows us to record income and expenses that are related to each accounting period that are totally comsumed and occured. And consistency concept allows us to regulate same accountin policy year after year. While as for as inventory valuation is concerned, inventory is recorded on cost or NRV which is lower. Some times inventory is recorded on NRV and some time on Cost. Is not against the consistency concept.
