NRV stands for Net realizable value. This value is calculated by deducting all the selling and other relevant costs to execute the sales, such as the cost of marketing or modification from sales price.

Five elements of a financial statement include the following. It’s important to note that notes to the financial statement are integral parts and not separate/distinct. Let’s go through the details related to the financial statement component. 1-Balance sheet (Statement of financial position) This component of the financial statement includes details like assets, equity, and liabilities….

Source document refers to original documents supporting financial transactions in the accounting system. In other words, journal entries/transactions are posted in the accounting system by looking at source documents. For instance, a sales invoice/dispatch note is a source document when going through the sales ledger. Similarly, the purchase invoice/receiving note is considered a source document…

The first important concept to understand is that VAT payment is not an expense for the manufacturer, trader, retailer, or anyone else in the supply chain. This payment is an expense only for the consumer who will consume the product/services at the end of supply chain.