Comfort Pty Ltd is a wholesaler of home furniture. The recent
bushfire destroyed one of its...
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Accounting
Comfort Pty Ltd is a wholesaler of home furniture. The recentbushfire destroyed one of its warehouse located in Cooma, NSW. Theinventory loss amounts to $180,000. Required: Discuss and justifyhow Comfort Pty Ltd should account for the inventory loss of$180,000 as an ‘expense’, in accordance with the definition andrecognition criteria provided in the AASB Conceptual Framework.
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DefinitionAccording to AASB Expenses are consumptions or losses of future economic benefits in the form of reductions in assets or increases in liabilities of the entity other than those relating to distributions to owners
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