Cost accounting and adoption in Venezuela of international financial reporting standards

In face of the importance of cost accounting in the generation of information for the elaboration of financial statements, to be presented following the International Norms of Financial Information (NIIF), it is pertinent to develop a documental investigation with the objective of determining and presenting the impact of these norms on cost accounting, starting from an up-to-date revision of the NIIF to be applied in Venezuela according to the Federation of Public Accountants of Venezuela (FCCPV), without seeking to exhaust the subject. Among the most important elements to be considered by cost accountants are: the assignment of variable and fixed manufacturing overhead on the basis of a real activity and a normal production capacity, respectively; the use of the PEPS inventory valuation method and pondered average; and, for the assignment of combined costs, the method of the market value at the point of separation and of the net realizable value.