29 May 2013
Hello, I want to know that if a company purchases goods from the market to be distributed free with its own finished product then at what value should we show it in our inventory? According to me the NRV is zero so we should value it as zero. What is your view please suggest..
29 May 2013
gift items valuation on cost price and shown as consumption as when finished goods sold.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
29 May 2013
Thank You for your advice. But sir since the comapny has no intention to sell the product given as gift in the market then the NRV is lower than the cost. How can we value it at cost in closing stock? It would be of great help if you could give reference of any citing or Accounting Standard