anveshgupta (Student) (94 Points)
25 March 2012An A ltd co, manfacturing fancy bedsheets had valued its closing stock of inventories of finished goods at realisable value,inclusive of profit and the export cash incentives.firm contracts had been received and goods were packed for export,but the ownership in these goods had not been tranferred to foriegn buyers.comment on the valuation of stock by the company
Kolluru Krishna Murty
(Partner)
(315 Points)
Replied 04 April 2012
This does not stick to the Accounting Standard on Inventories.
Since the material is in stock as on the date of closing and the title in goods is still with the company the treatment of stock is not correct.
You cannot show the element of prifit in stock,this is only stock with third parties.
kkm
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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