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Querist : Anonymous

Querist : Anonymous (Querist)

07 July 2017 What is the need for valuation of closing stock?
I mean what is the logic behind the valuation of closing stock

Amol S Joglekar

Amol S Joglekar (Expert)
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07 July 2017 closing stock is vlued for various reasons. One chief reason of valuing closing stock at the year end is to ascertain true and fair profit.... (In the dynamic world, the prices also change very fast.....and hence cost or market price whichever is lower is the principle used to value closing stock for ascertaining profit as on the year ending date.