Net Realizable vaue for a new product

Hariharan Iyer (DGM-F&A) (24 Points)

09 July 2021  

Many new products are developed by Research & Development department of our company.

As new product take time to gain market/customer acceptance to go for field trials ,rectification of performance issues and their rectification etc it is carried at Cost for Ind As -2 Inventory valuation.

Can we apply the Market Price of similar products sold by other companies in the Industry as NRV for valuation of Inventory under Ind As-2? In such a case (using market value of other companies)whether this will be Fair Value or NRV?