As 2

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 September 2011 fact:-
assessee is engaged in the trading books.
there is non move/slow moving items hold
at warehouse.

As per as-2 it should value at lower of cost & NRV

query:-
how to judge the net realiable value?
which are the source to determineNRV? OR
WHAT ARE THE PARAMETER to judge the NRV?

Jitender

Jitender (Expert)
Follow

05 September 2011 as per AS2- Finished goods are to be shown at lower of NRV or cost
and Raw material shall be shown at Cost.

Thereis no mechanism given by AS2 with regard to calculation of NRV.

It is upon the assessee to determine the Net Realizable Value in the market of the underlying inventory but the policy should be followed consistently.