26 May 2012
AS 2 has been formulated by the Institute of Chartered Accountants of India after giving due consideration to the relevant International Accounting Standard in light of the conditions and practices prevailing in India. Para 30 of AS 2 recommends that where base stock method is used, the difference between the value at which it is carried and the value by applying the method at which stock in excess of the base stock is valued, should be disclosed. If base stock method is used for accounting purposes, the disclosure should be made in accordance with para 30 of AS 2 since it represents a good accounting practice to be followed by all types of entities.
please check the link below for detailed committee view regarding such valuation.
CAclubindia
