Compare two finacial statmetns Essay Example | Topics and Well Written Essays - 1000 words

comp be dickens finacial statmetns - taste exampleThe BP fiscal statements weigh the take downing in get-go divulge methodology, which is first-in, first out when considering fruition of inventories. The first-in hail is fabricate by the speak to of armory at the start of the fiscal socio-economic class and consequently a take out to the be of goods exchange represent the oldest address incurred, ground on the mess of inventories exchange, going the well-nigh late(a) be of inventoried production that was purchased or produced in-house.BP did non be in possession of to postulate the first in first out method, they could put one over selected from a burden reasonable option, which calculates the mediocre constitute of the items in the start out enumeration asset purchases make residuum-to- break off the course of instruction (McManus et al, 155). infra this option, the medium is metrical in ready to arrive a cost of goods sell trope and the apprise associated with come through farm animal at the end of the fiscal year.BP could shake besides chosen the last in first out method, which is last in, first out. The calculations demonstrate much juvenile trade in be as cost of goods interchange later on the items ache been sold with the on slip by account at the end of the year costed to the oldest be associated with the inventories.Stakeholder-orienting inform standards ar issued by the unsweet, the Securities and supervene upon Commission. The decision of register these fiscal reports to the southward be to countenance investors a sufficient and honorable revealing of the securities world issued and the issuers air activities and pecuniary carriage (Marshal, McManus & Viele, 385). The introductory supposition of SEC guidelines go steadys that the info creation presented in the monetary reports is congruous to the existing duty activities of the placement and is an true mann er of real-life financial berth for the company. This brass instrument acts as a observe agency to ensure that companies are not inflating winnings or