Accounting standards

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Querist : Anonymous

Querist : Anonymous (Querist)

01 January 2011 Hi experts
As per As-11 closing inventory should be valued at closing rate,but in case at what rate opening inventory should be taken either at opening rate or we to consider same value as we calculated in closing inentory?pls explain me how to value with reason

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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02 January 2011 As per AS 11 , inventory has to be valued as per fair value. Opening stock value = closing value of previous balancesheet.

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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02 January 2011 The opening stock need not be revalued in view of the decisions in:-
1) CIT Vs Carborundum Universal Ltd (1984) 149 ITR 759(Mad).
2) CIT Vs Mopeds India Ltd (1988) 173 ITR 347 (AP).

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