Auto Dealership Car Vehicle Closing Stock Valuation

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This discussion explores the correct valuation of year-end closing stock for auto dealerships, specifically under IndAS regulations. The core question is whether it's appropriate to reduce the closing stock value by deducting wholesale incentives (MAC) and dealer rebates (DRF). While incentives have been booked as income, the focus is on ensuring the unsold stock is accurately valued.

pfcollect

pfcollect (Querist)

13 August 2024 Auto Dealership Car Vehicle Closing Stock Valuation : Is it right to Reduce Incentives like MAC , DRF to reduce from Year End Closing Stock ? Please guide as per IndAS.Thanks

Gokul Sharma

Gokul Sharma (Expert)

14 August 2024 better to book incentives in other income.

pfcollect

pfcollect (Querist)

14 August 2024 That is already done ,taken as income
But unsold stock ,to come at correct valuation ,is it appropriate to reduce MAC [Wholesale Incentive] & DRF from Closing Stock?

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