According to IAS 8, where no specific IFRS applies to a transaction or event, management should use its judgment to develop and apply an accounting policy that results in information that is:

1. Relevant to the decision-making needs of users.
2. Reliable, in that the financial statements:
   • Faithfully represent the financial position, financial performance, and cash flows of the entity.
   • Reflect the economic substance of transactions and events.
   • Are neutral (free from bias).
   • Are prudent.
   • Are complete in all material respects.

When making judgments, management should consider the following in descending order:

• The requirements in IFRS dealing with similar issues.
• The definitions, recognition criteria, and measurement concepts for assets, liabilities, income, and expenses in the IFRS Framework.

Alternative Accounting Policies:

i. Inventories:
Under IAS 2, there are two main cost formulas for determining the cost of inventories:

• First-In, First-Out (FIFO).
• Weighted Average Cost (AVCO).

ii. Depreciation:
Depreciation is the systematic allocation of the depreciable amount of an asset over its useful life. The main methods of depreciation are:

• Straight-line method: Evenly spreads the cost over the useful life of the asset.
• Reducing balance method: A higher depreciation expense in the earlier years.
• Units of production method: Based on actual usage of the asset.