Inventory Valuation AS2 Cost
This query is : Resolved
01 June 2022
As per AS 2 Inventory needs to be valued at COST or NRV whichever is lower. Accordingly for Year1 assume client follows weighted average method for inventory records & closing stock cost was Rs.100 and Market value was Rs.80, therefore valuation was done at Rs.80 as per AS2.
In year2 for valuation what should be cost to be considered to be compared with NRV ? i.e. if NRV is Rs.110 then which cost to be compared i.e. Rs.80 (as per AS2 of year1) or actual cost of Year1 i.e. Rs.100. Kindly give clarification & also reference of AS2. Also is it not considered as upward valuation if compared with opening stock value .
In year2 for valuation what should be cost to be considered to be compared with NRV ? i.e. if NRV is Rs.110 then which cost to be compared i.e. Rs.80 (as per AS2 of year1) or actual cost of Year1 i.e. Rs.100. Kindly give clarification & also reference of AS2. Also is it not considered as upward valuation if compared with opening stock value .
01 June 2022
As per AS 2 Inventory needs to be valued at COST or NRV whichever is lower.
Now cost is 100 adopt it.
Now cost is 100 adopt it.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- TDS 194-T applicability
- Applicability of GST on Salary Reimbursement Component
- GST ITC REVERSE
- Tds on commission charges
- TDS on Complimentary "Desi Ghee and Gold Coin" Provided to KBC Contestants
- Need Professional Opinion AY 2012-13 Old Demand
- Withdrawal in cash from partners capital account by partner
- Renovation exp. in flat by family member
- FAST-DS Scheme - Foreign Assets
- Consolidated financials
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Starting trading business
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
Quick Links
ARTICLESHIP
07 September 2026
Article/ Paid Assistant
Murali and Sumeet Chartered Accountant
Bengaluru
CA Foundation
View Details
ARTICLESHIP
18 September 2026
Industrial Trainee
Twenty Point Nine Five Ventures Private Limited
Noida
CA Inter
View Details
09 September 2026
SENIOR AUDITOR & ACCOUNTS MANAGER
Anupam Parashar & Co.
Ghaziabad
CA Final
View Details
ARTICLESHIP
01 September 2026
Articles
Saini Pati Shah & Co LLP, Chartered Accountants
Mumbai
CA Foundation
View Details
22 September 2026
Account Assistant
Chirag P Shah & Co. Chartered Accountant
Pune
B.Com
View Details
CCI
Pro
CAclubindia
