Revised schedule vi

This query is : Resolved

Guest

Guest (Querist)

11 February 2013 In FAQ of ICAI, stores and spares i.e. inventory is always current asset even if it is not to be consumed in normal operating cycle and not to be sold in 12 months from b/s date.

Sanjay Chauhan (IFRS)

Sanjay Chauhan (IFRS) (Expert)
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13 February 2013 It is because you never know when breakage may happen and the store will be consumed.

In other case, there may be such stores that are no longer usable and hence they need to be discared at somepoint and hence they anyways become held of sale inventory.

There can be no definite plan to use the particular store after 12 months unless there is any practical application of the same.