AAS-2

hi...

1. The sale value is the sales price of closing stock at last date, i.e the stock at that price at shich the business normally sales its procuct.

2. The market value is the value that exists in the market in which the business is run.

3. While the net realisable value is the value that can be realised by a business if it sells its product in market....

This means the difference betn market value and net realisable value is that market value is existing value in the market, while net realisable value is the value realisable whenever stock if sold..

And closing stock is valued at COST PRICE or MARKET VALUE whichever is lower

THIS Z NOT AAS2 , THS Z AS (ACCOUNTING STANDARD 2)

AAS 2 IS "OBJECTIVE & SCOPE OF AUDIT OF FINANCIAL STATEMENTS".

 WELL. THE EXPLANATION AS SUGGESTED ABOVE IS SUFFICIENT.

ipcc audit module says that stock in trade is valued at cost or NET REALISABLE VALUE (whichever is less) and not cost or market value

NRV is  not that simple as it looks here, plz look into AS-2 for little more technical details !!