Demurrage cost whether included in inventory valuation?

AS 2053 views 1 replies

shalu naredi

accountant

25 Points Joined November 2013

Whether Demurrage cost included in inventory valuation ? If yes which is the accounting standard that says that and what is the interpretation?

Replies (1)

sivaram

Asst Mgr-Taxation

6918 Points Joined April 2009

All cost incurred in bringing inventory to the present location and condition should be included in Inventory as per AS-2.In your case if this demurrage cost is necessary in bringing your inventory to the present location then include the same in your inventory cost