acconting standard

This query is : Resolved

jatin arora (Querist)
Follow

16 June 2008 if stock had sent for further processing how you value the stock as on balance sheet date? accounting standard 2 doesnt say something about this. Is it necessary that on balance sheet date stock should be luying in business premises.(please explain with an example)

CA. Yayati Tyagi

CA. Yayati Tyagi (Expert)
Follow

16 June 2008 if stock is in the process as on b.s date, it should be valued as Work In Process. u need to calculate processing cost and while doing it, take care of status of completion of process.

if process is not 100% complete, u may assume it 50% or more/less complete. calculate labour/power/other cost for that process and divide that by total qty processed and get per unit cost. add this cost to cost of goods, it is cost of WIP.

it does not make any difference if stock is lying in or out of factory premises. valuation method will be same if u have the ownership.

CA. Yayati Tyagi

CA. Yayati Tyagi (Expert)
Follow

16 June 2008 if u get this process done by third party, u can take charges payable to that party as processing cost.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Santosh Behera

KANHA ASSOCIATES

Smrity

Rajasekar

Rajesh

Subscribe Now

acconting standard

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

CA Final

GST CONSULTANCY

Manager- Finance and Compliance

GST CONSULTANT

Senior Executive

Accountant