22 January 2013
sir, jab bhi hum inventory valuation karte h tab cost or NRV dono me se jo kam h us par karte h, lekin aiesa kyun? Aur agar entity chahe to sirf cost pe bhi to kr skti?
22 January 2013
Entity will always want to value the stock at least on cost or at a higher value to show the good performance of business,
therefore our ICAI, to avoid any misleading results of any business, specifies in AS 2 the value of inventory should be actual cost or NRV which ever is less.
No the entity should have to value the inventory at cost or NRV which ever is less.
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