Regarding closing stock valuation

This query is : Resolved

Prashant Balkrishna Thanekar (Querist)
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31 May 2019 Dear sirs,
We are calculating stock at cost or market price whichever low basis.
In this cost means what ?
Is it landing cost or what
How to calculate cost for inventory valuation

ADNAN HASAN

ADNAN HASAN (Expert)
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31 May 2019 Dear Prashant,

Stocks are valued at low two:-

a) Cost
Or
b) Net Realizable Value (NRV)

Note:-1 Cost Means: It includes the price of goods, shipment costs, insurance fees, customs duties, and any other charges incurred along the way.
Note:- 2 NRV =estimated selling price in the ordinary course of business - estimated costs of completion and the estimated costs necessary to make the sale.

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