Delayed Goods Clearing Charges
Question: Spsmiter Pvt. Ltd. has to pay delayed clearing charges (over and above negotiated price) for taking delayed delivery of goods from the Suppliers' Godown. Upto 2009-2010, co. has regularly included such charges in the valuation of closing stock. Now, this being in the nature of interest, the co. has decided to exclude it from closing stock valuation from the financial year 2010-2011 and this change would result into decrease in the profit by8.75 lakhs.
How would you deal it with reference of relevant Applicable AS.
Try to solve this Prob. before downloading the Ans (attached file) below ans comment on the given Ans that Can a student get the Full Marks alloted to this question (say 5 Marks) ????????
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