Valuation of closing stock

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 October 2010 In case of shares how shares is to be valued at cost / cost or mp whichever is less when assessee is valuing other stock eg cloth at cost price.Actually in a partcular case due to fall in mp of shares loss will be huge if valued at mp?what to do? plz reply?

Ramanananda

Ramanananda (Expert)
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01 November 2010 if u r holding shares as a long term investment, u can value them at cost, unless there is a permanent diminution... however in case of market fall and u can establish the fact that there is no/very minimal possiblity that the share price will go up or reach its cost, u can provide for that fall in MP.

In case u r holding shares as a short term investment, u have to value them at cost or MP which ever is lesser..

Even the loss is huge, u have to book the loss in that year....

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