Final Students please help

sivaram (Asst Mgr-Taxation) (6918 Points)

22 March 2011

can any one explain in detail what is this stock adjustment is all about and how the value is arrived with addition/deduction to Net Profit

Please explain to a layman like me in detail

Thanks in advance

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sivaram (Asst Mgr-Taxation) (6918 Points)
Replied 22 March 2011

sorry the attachment is given below

Attached File : 10 valu.xls downloaded: 218 times

sharath chandra a (CA FINAL student) (45 Points)
Replied 22 March 2011

If u basically know about AS-1 – it would be beeter.

CONSISTENCY is one of the FUNDAMENTAL ACCOUNTING ASSUMPTIONS.

When there is a change in the method of valuation, the same needs to be quantified & the efffect on Profit/Loss needs to be stated as per AS – 1.

The file states the material effect on profit due to change in valuation method. -- FIFO to LIFO,LIFO to FIFO ..to Weighted avg...

sivaram (Asst Mgr-Taxation) (6918 Points)
Replied 22 March 2011

Mr Sarath chandra

can u explain how this amount is arrived Addition /Deduction and the dr/cr in FIFO/LIFO means what ?

please explain

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