Icds and inventory valuation

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

14 October 2017 One of my client who has to get his accounts audited, he valued stock at Rs.1800/- instead of Rs.1400/- per bag and thereby he has shown a profit of Rs.3.90 lakhs. Now i told him that he could not value the stock at higher than cost
and he can value the stock lower of cost and net realiasable value.If we value at 1400/- per bag ,the net result will be
loss around 3.00 lakhs.
He is asking me to value at Rs.1800/- per bag but i am objecting to his proposal.
can we value at Rs.1800/- per bag and is it correct.kindly advise.

Ashiwini Ballodia

Ashiwini Ballodia (Expert)
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14 October 2017 As per ICDS stock to be valued at Cost ir NRV whichever is lower. In you case it to be valued at 1400. Stock never can be valued above cost

Querist : Anonymous

Querist : Anonymous (Querist)

14 October 2017 Thank you Ashwini Ballodia