27 December 2010
One of our Client has valued the inventory @ market Value. I have made a reservation in my Audit Report. They have clarified that the goods so valued are agreed to be sold at such price. Is the clients answer justifiable?
27 December 2010
as per AS your observation, is correct. If the market value is less than cost price, may be valued, otherwise any reply is not acceptable.
28 December 2010
The AS-2 clearly states Cost or Market Value whichever is lower. So unless the market value is lower the client cannot value its stocks at Market value.
CAclubindia
