AS-2 ) Writing Down Inventories below Cost/NRV ?

AS 701 views 2 replies

AS PER AS2 WE WRITE DOWN INVENTORIES BELOW COST / NRV

1)  WRITING DOWN OF INVENTORIES -STOCK OF FG

IS THE LOSS (due to w/d to NRV) TO BE CHARGED TO P/L a/c AS EXEPTIONAL ITEM ?

2)  WRITING DOWN OF INVENTORIES -STOCK OF RAW MAT & SUPPLIES

CASE A : WHEN RAW MAT. ARE TO BE INCORPORATED IN FG

IS THE LOSS (due to w/d to NRV) TO BE CHARGED TO P/L a/c AS EXEPTIONAL ITEM ?

CASE B : WHEN RAW MAT. ARE NOT TO BE INCORPORATED IN FG

IS THE LOSS (due to w/d to NRV) TO BE CHARGED TO P/L a/c AS EXEPTIONAL ITEM ?

         PLEASE GIVE ANS TO EACH OF THE SITUATIONS

Replies (2)
 
 

 
 

help me with it

As per AS5, Para 14(a) writedown of inventories to NRV as well as its reversals are "profit or loss from Ordinary activities" that require separate disclosure.

Inventories include Finished goods & raw-materials-no separate answers required.


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