How to disclose e book inventory for e book seller


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Querist : Anonymous

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Querist : Anonymous (Querist)
19 September 2016 Hello,
i am sushant ca final student , i have a query. i am doing audit of one of the e book seller company. they sell e book to customers they don't show inventory instead of they show it as capital asset WIP under fixed asset. Please tell me what its the correct discloser?

20 September 2016 is it e book library OR e book selling or both?
In the case of e book library, showing it as capital WIP is justified but NOT for seller

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Querist : Anonymous

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Querist : Anonymous (Querist)
20 September 2016 he is a seller of e book.

20 September 2016 No that is not right. It is stock in hand and same shall be governed by AS 2

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Querist : Anonymous

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Querist : Anonymous (Querist)
20 September 2016 But they have one master file of that e book in system. how much quantity we should show as closing stock and at what value?

20 September 2016 I knew your next query would be about valuation. That is the reason I already mentioned AS 2...which means Accounting Standard 2.....Do the valuation as per AS 2.
The quantity which is the stock shall be shown as the closing stock


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