ACCOUNTS

closing stock should be valued at Cost or NRV whichever is lower

As per AS-2,closing stock should be valued as per cost price or market price whichever is lower.one should not value the closing according to his wish.

Dear Ankit, Kindly make a small correction. Comparison should be made between cost and NRV and not cost and market price. The use of the word NRV will be appropriate. Because as per AS 2, NRV means: Estimated Selling Price (-) Estimated Cost of completion (-) Estimated costs to make sale