As-2 closing stock
This query is : Resolved
23 July 2012
Dear Sir,
My client is manufacturing a liquor and he is giving some gift articals ( eg; bags , watches, gold coins )to the retalers ans suppliers for sales promotions.
but these items cost they are treating as a expenses . they are not treating as a Stock.
my doubt is whether these gift articales
Can we treat as Expenses or Inventoty ?
because these items value is very high.
if inventory means please give some reference
My client is manufacturing a liquor and he is giving some gift articals ( eg; bags , watches, gold coins )to the retalers ans suppliers for sales promotions.
but these items cost they are treating as a expenses . they are not treating as a Stock.
my doubt is whether these gift articales
Can we treat as Expenses or Inventoty ?
because these items value is very high.
if inventory means please give some reference
CA.Sourabh Sethia
(Expert)
24 July 2012
its not a inventory
its an expense
value of item is of no relevance (high Value)
Because As per AS-2
Following Items are considered as Inventory (stock):
1. Raw Material – the items which are used for manufacturing Finished goods and it also includes packing Materials & other Such Items
2. Finished Goods
3. Semi-Finished Goods
its an expense
value of item is of no relevance (high Value)
Because As per AS-2
Following Items are considered as Inventory (stock):
1. Raw Material – the items which are used for manufacturing Finished goods and it also includes packing Materials & other Such Items
2. Finished Goods
3. Semi-Finished Goods
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