Abstract:
Purpose:
The purpose of the study is to identify the method company currently using and how they
work. The objective is to identity the alternatives and its impact on financial statement.
Methodology & Design:
The study is based on secondary data and Engro fertilizer is been selected where the 2 years
data has been taken for testing purpose. The data has been gathered from company yearly
financial statement, annual report and through internet.
Findings:
The result of the study will explain the alternative that has been recommended are beneficial
for Engro or not.
Limitations:
Fair value not available, units produced not available and machine repair and maintenance
not available. Company operating expenses did not show description that is important for the
working.
Recommendations:
It has been recommended to Engro for Fair value model, as it is reliable according to the
international financial reporting standards. In addition, follow FIFO method for the inventory
as FIFO method show more sales and less COGS. We also recommend them to continue debt it is easier to follow, and cheap as compared to the equity financing.financing, as
