Hi, sir/medam
CAN WE CHANGE CLOSING STOCK METHOD FROM LIFO TO WEIGHTED AVERAGE IN GOLD JEWELLERY BUSINESS??
3 Replies
Yasaswi Gomes new
(Finance )
(4514 Points)
Replied 05 August 2022
Accounting standards dont mind doing that and we have to disclose it as prior period error standard or equivalent AS standard.
Shoaib Jariwala
(13 Points)
Replied 06 August 2022
Ok so we can change CLOSING STOCK CALCULATION METHOD RIGHT??
But if i am doing so profit is going too high around 8 times high, so will I have to pay tax on that or it can be adjust nd no more tax will be levied due to high closing value because of changing closing stock method.
Yasaswi Gomes new
(Finance )
(4514 Points)
Replied 07 August 2022
A change in an accounting policy should be made only if the adoption of a different accounting policy is required by statute or for compliance with an accounting standard or if it is considered that the change would result in a more appropriate presentation of the financial statements of the enterprise. As5.29
these charges are made for the present year only and future periods. Retrospective change is not allowed. For the current year, you will have to bear the tax consequences. This is the same for IndAS, IFRS and AS
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