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
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
CAclubindia
