Closin Inventory Valuation

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ANKIT (Querist)
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28 March 2009 Hellow,

Please let me know how an approved government values stock of inventory? On what basis they calculates the Prices of an inventory?

In one case they have adopted Avg Price Per Unit...What it mean? Is it a Cost P.U or Mkt Value P.U

Also let me know the citetion where Avg price is adopted as Mkt value

ANKIT

ANKIT (Querist)
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30 March 2009 Plase Reply - Urgent

CMA KNVV Sri Vidya - Sri Kanth

CMA KNVV Sri Vidya - Sri Kanth (Expert)
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30 March 2009 cost or market value which ever is less

wat ever might be the situation u should consider the lesser price

ANKIT

ANKIT (Querist)
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30 March 2009 Sir,

Please also let me know the citetions where Stock valued by approved valuer at avg cost is not accepted by appelate authorities.

CA LOKESH KASAT, FCA, M.Com

CA LOKESH KASAT, FCA, M.Com (Expert)
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01 April 2009 As per AS-2, it is not said that Cost or Market Price Whichever is less.

As-2 suggest the various ways to value the stock, where it is one of the method.
Where stock is valued by approved valuer, it indicates that company doesn't have their specific policy to value closing Stock.
You have to give a support back up as to why avg price is being adopted to authority.

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