25 June 2009
Hie, i wanna discuss one thing with you guys rather wanna know the how to proceed further please help me out......
We have a client the main of whom is to deal in shares and securities the problem is that he had purchased some class of shares in different listed companies at the time when stock market was depicting 21,000-22,000. but now when the market reaches to 14,000 around.My view is to keep the value of share at its Realizable value as per AS-2 but management is of view that we cant do that because our intention is not to sell these shares in the coming session.
This issue has already been discussed with the management of the co. and i am strongly upheld my stand.
DO suggest me with the strong reason so that i can argue with the management.
26 June 2009
according to me, as per as-2 inventories i.e.in your case shares etc are to be valued at cost or market value whichever is less. so if management wants to show the stock at cost then it is the violation of accounting standard which requires qualification of audit report. so my dear sanjeevbhai your arguments are perfectly right.go ahead.
CAclubindia
