Valuation of closing stock
This query is : Resolved
08 September 2012
Dear Expert,
Let say a Co. was adopting FIFO Method for valuation of his Closing Stock for last 4 years. But now in this year, Co. wants to adopt Weighted Avg. Method.So i want to know that i have to give retrospective effect or Not ?
Let say a Co. was adopting FIFO Method for valuation of his Closing Stock for last 4 years. But now in this year, Co. wants to adopt Weighted Avg. Method.So i want to know that i have to give retrospective effect or Not ?
08 September 2012
I think no need to give retrospective effect. But however effect on profit for the year regarding such change should be disclose and regarding change should be indicate in the audit report.
OM SAI SRI SAI JAI JAI SAI
OM SAI SRI SAI JAI JAI SAI
Message likes :
1 times
08 September 2012
Yes, Agree With The reply.
Message likes :
1 times
08 September 2012
The change of valuation of inventory is a case of change of accounting policy according to AS 5.Any change in an accounting policy which has a material effect
should be disclosed. The impact of, and the adjustments resulting from,
such change, if material, should be shown in the financial statements of
the period in which such change is made, to reflect the effect of such
change. So, no need to show the retrospective effect. its enough to give the current year's effect
should be disclosed. The impact of, and the adjustments resulting from,
such change, if material, should be shown in the financial statements of
the period in which such change is made, to reflect the effect of such
change. So, no need to show the retrospective effect. its enough to give the current year's effect
Message likes :
1 times
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
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- STCG....................................................
- TAN for Partnership
- Sales return eway bill
- Treatment of Pension ?annuity returns on PMVY
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- Taxation on LTCG for property sold after 24JUL2024
- GST ON DAMAGED GOODS
- GST Registration Horse racing
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
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
CAclubindia
