Hellloo Frnds.. I have one query on AS 2 - Valuation of Inventory. A company has decided to store a particular product for a prolonged time to improve its quality. In this case, as per the provisions of AS 2, whether the interest cost of holding the inventory incurred by the company shall be included in determining the cost of inventory ?
1 Replies
Prashanth
(Chartered Accountant)
(2322 Points)
Replied 08 January 2012
Yes, u can do but not as per AS-2 but according to AS-16(Borrowing cost) ,interest cost can be capitalised till the iventory or asset is ready for its intend use.Now in this case u can add interest cost to the inventory as per AS-16....
Recent Topics
- 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
- Rectification to decrease income in SCHEDULE OS
- Can Statutory Auditor of a subsidiary become concu
Related Threads
CAclubindia
