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Closing stock value

NANDISH DOSHI (Student CA-Final) (72 Points)

10 June 2017

Hello,

one comapny is trading share business. I have not determine closing stock of share..so which value consider at closing stock.. AS-2 and AS-13 not apply..So can I have taken at cost or Mkt.vlaue WEL or at cost OR Mkt Value..and also which method follow ?

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(Guest)

As there is no accounting standard relating to shares held as stock, however, the both AS-2 and AS-13 says about valuation at lower of cost or net realisable value. So, you can follow them.

In income tax laws, ICDS 8 applies, which also says about the same treatment.