Valuation of stock

This query is : Resolved

Viren Gandhi (Querist)
Follow

01 April 2011 Hi My name is viren.I just wanted to know that while doing stock audit of one client I found following issue.
1. Party values it's good on LIFO Basis. SO it is correct or not. and other thing is that why FIFO method is prevail over LIFO Method.

2. Party also take Input Exise duty while inventory valuation. As per my thought if Party got excise input than it should not become part of inventory valuation in statement submitted to bank

Abhishek

Abhishek (Expert)
Follow

06 April 2011 LIFO is not an accepted method of valuation as per AS-2 and hence it is wrong . AS-2 specifically excludes LIFO as a method of valuation:

If input credit has been taken for ED paid then it cannot form part of cost of asset - this is specifically mentioned in AS-2 so you may refer that to the client if he disputes

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

B.K.RAJANDHERAAN

NITHIN GEORGE

KRK

Amit Yadav

John Ravindran Moses

Subscribe Now

Valuation of stock

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Manager- Finance and Compliance

GST CONSULTANT

Accountant

Article Assistant

CA Final

GST CONSULTANCY