Ashley (cs) (178 Points)
02 July 2008AS-2 deals with Inventories but excludes inventors in form of shares held as stock in trade and AS-13 deals with Investments which is not stock in trade.
would like the learned members of this forum to guide me how the stock in trade is to be accounted for in books of accounts. Last year in books of accounts, it was shown as cost, but to my knowledge it has to be either at cost of fair market value as on 31st March whichever is lower.
views solicited
CA. A. Kumar
(Associate Consultant)
(2362 Points)
Replied 03 July 2008
As per AS-2, stock in trade is accounted in accounts as follows;
Cost Price
or
Market Price
Whichever is LOWER
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
CAclubindia
