Manufacturing accounting
Plain-English guides to the accounting issues manufacturing companies face, each with a worked example from the industry.
Manufacturing accounting guides
- Manufacturing accounting: the key IFRS issues3 minute readManufacturing accounting explained: inventory costing, standard costs, overhead absorption, obsolete stock, warranties, plant, grants and tooling under IFRS.
- Standard costing and variances under IAS 23 minute readHow standard costing works under IAS 2: when standard costs are allowed, material, labour and overhead variances, and which variances go into inventory.
- Overhead absorption and normal capacity3 minute readOverhead absorption under IAS 2 explained: allocating fixed production overheads on normal capacity, and unabsorbed overheads in low-output periods.
- Obsolete and slow-moving inventory3 minute readObsolete inventory under IAS 2: how manufacturers write down slow-moving stock to net realisable value, ageing-based estimates, raw materials and reversals.
- Warranties: assurance or service3 minute readManufacturing warranties explained: assurance-type warranties under IAS 37, service-type and extended warranties under IFRS 15, with an example.
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About these guides
Each guide starts from an accounting issue manufacturing companies actually face and works through it with numbers from the industry. 5 of 14 planned guides are published; more are added with every batch.