Period Cost and its Impact on Financial Statement

Alina Magdalena Ilcus ()
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Alina Magdalena Ilcus: 1 Decembrie 1918 University of Alba Iulia, Romania

REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, 2017, vol. 18, issue 3, 315-325

Abstract: Period costs are extremely important for financial disclosure because they are running directly in the P&L account, having an immediately impact on income statement, and thus on financial performance. In the management accounting, period costs are deducted from revenues without ever having been included as part of inventory, whereas in the financial accounting they are assigned to the accounting period. In this paper we posit that employees benefits (IAS19) represent period costs, highlighting the main difference in treatment of fringe benefits on the short term and on the long run, where accrual approach intervenes. (IAS37).

Keywords: period costs; treatment in month end closing; accrual accounting method; fringe benefits. (search for similar items in EconPapers)
JEL-codes: J31 J32 J33 (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:rom:rmcimn:v:18:y:2017:i:3:p:315-325

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