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Revaluation of inventory

shijil (Article) (32 Points)

01 August 2013

Can we adjsut the revaluation of inventory loss against general provision for inventory? Istead of recoganzing in Income statement

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veeru sagar (BBE,M.com,CA Final ) (468 Points)
Replied 02 August 2013

Dear shijil

As par accounting standard -2 issued by ICAI ,explain this the inventory is valued at cost or nrv (net realisable value) which ever is lower .......and the loss due to this adjustment autometically transfer in the finacial statements and as you have explained the above accounting treatment voilate the AS-2 , you can not adjust the inventory loss in any kind of provision