Can anyone help me by explaining the methods of valuation of inventories - RM, WIP & FG, all three ?????????
4 Replies
Navneet Gupta
(Article)
(129 Points)
Replied 22 December 2009
i am not asking about theoretical concepts. i need to know, from a practical viewpoint, how we can verify valuation of inventories?
ANAND JAIN
(ASSISTANT AUDIT OFFICER (COMMERCIAL))
(22 Points)
Replied 25 December 2009
SEE ITS COST OR NET REALISABLE VALUE. FOR COST YOU LOOK AT PURCHASE PRICE IN CASE OF RAW MATERIALS WHICH GENERALLY DO NOT HAVE ANY REALISABLE VALUE.
WIP IS VALUED AGAIN AT COST AS THERE IS NO REALISABLE VALUE
FG IS TO BE SEEN CLOSELY. COSTING RECORDS OF THE COMPANY FOR COST, AND LATEST SALES INVOICE FOR REALISABLE VALUE
YOU MAY ASK A SPECIFIC QUES. ALSO
Recent Topics
- NRO Interest - Taxed at source and in Foreign Coun
- Clarity needed on effective date
- Income Tax Refund Deadline Shortened to Five Years
- Rectification Applications for Past GST Demands
- Where can I find a trusted provider to hire a skip
- GST Invoices Series
- FILING OF ITR AY 20-21
- CLAIMING OF U CLAIMED RCM
- Building construction works
- REGARDING GSTR-9 F.Y 2023-24
Related Threads
CAclubindia
