Dear Chartered Accountants,
Query 1: what is mean by net realisable value give some examples?
Query 2: why inventory are valued at lower of cost what is the reason while making preparing financial statement???
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ACCOUNTING STANDARD OCEAN
Replies (1)
AS 2 - Valuation of Inventory
1) Net realisable Value is expected selling price less total production and selling Cost
2) Inventory valued at lower of cost because, to cope up with the situation , when inventory deteriorated or has become obsolete or some time market price decline.
1) Net realisable Value is expected selling price less total production and selling Cost
2) Inventory valued at lower of cost because, to cope up with the situation , when inventory deteriorated or has become obsolete or some time market price decline.
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