Hi,
How do you value Inventories when we are dealing with futures in commodity market?
Generally stock is valued at lower of cost or market price. But in case we enter into futures contract for the same how do you value it?
Please reply
Hi,
How do you value Inventories when we are dealing with futures in commodity market?
Generally stock is valued at lower of cost or market price. But in case we enter into futures contract for the same how do you value it?
Please reply
Dear Remya.
We only maintains inventory for Shares at market value at valued date.
And, for Future & derivates, we doesn't maintain any inventory because generates only income/loss so we whatever we earned/loss, will transfer to Income/Loss.
Thanks,
Shobhit
Aggarwal Sarawagi and Co
New Delhi
CA
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Rahul Dang & Associates-Chartered Accountants
Pune
CA Inter
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Vardhaman Group of India
Pimpri Chinchwad
CA Inter
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