Interpretation

Revenue Recognition Method: 

IFRS 15 establishes a single revenue recognition framework which requires an

entity to recognize revenue to reflect the transfer of goods and services for the
amount it expects to receive, when control is transferred to the purchaser.

Sale of goods are recorded when the risks and rewards are transferred, that is, on
dispatch of goods to customers.Another reason for these companies using the
cost recovery method is that there is uncertainty in the collection of money
resulting from the sale.

Inventory Valuation Method:

 In Chemical manufacturing, one batch of a chemical may be mixed with another
batch of the same chemical. Because it would be difficult to account for the
mixture, so these companies are using weighted average method.

Depreciation Method:

Depreciation is charged on all fixed assets by applying the reducing balance

method at the rates specified in note 5. The rates are determined to allocate the
cost of an asset less estimated residual value, if not insignificant, over its useful
life. While this seems logical, the company will end up reporting lower net income
in the early years of the asset's life (as compared to the use of straight-line
depreciation)