CAS 19- Joint Cost

Question 1

Definition

Answer 1

1. Cost of common resources used to produce two or more products
2. Joint product- Two or more products- same process- seperated in processing- high salable value- main product
3. Separation point - Point at which joint-sep indentifed

Question 2

Principles of measurement

Answer 2

1. Cost upto split off point- as in CAS
2. Cost after split off - Cost of both direct and indirect resources consumed in joint or by prodcut procc
3. Processing-Outside party- Inv price+tax-refund
4. Process-Scrap or waste- NRV_ net disp cost

Question 3

General principles

Answer 3

6. Subsidy, grant or incentives shall be reduced

7. Penalties ,damages, fines paid to stat auth not cost

Question 4

Assignment of cost

Answer 4

1. Benefits recvd - foll methods
   a) Physical units method
   b) NRV
   c) Tech estimates
2. Value of by product by adjusting against joint cost- estd- foll methods
   a) NRV
   b) Tech estimates

Question 5

Presentation

Answer 5

cost statement - element wise - ind product cost of joint products and value assigned to by products be presented

Question 6

Disclosures

Answer 6

1. Basis of allocation- JC - individual , value- by product
2. elements which are mat,significant and quantifiable
3. Elements-included-note,footnote,schedules
4. Any change in cost acc principles, methods and practises, relating to measurement of Joint cost its assignment and by products value assignment - disc