Hi,
My company was using Avg Method for Inventory valuation,but now they are using FIFO Method.It is correct? Pls advise, actually opening stock is derived from Avg Method and Closing Stock is from FIFO Method.
Hi,
My company was using Avg Method for Inventory valuation,but now they are using FIFO Method.It is correct? Pls advise, actually opening stock is derived from Avg Method and Closing Stock is from FIFO Method.
valji
(Accounts manager-MBA)
(2150 Points)
Replied 14 December 2011
FIFO METHOD IS CORRECT AS PER AS 2
CA Maulik Rachh
(-)
(114 Points)
Replied 14 December 2011
FIFO method is correct..however some disclosure requiremetns are to be followed..
Shyam Kanabar
(Article)
(160 Points)
Replied 14 December 2011
As per AS-2 FIFO method is correct, however as per It is to be disclosed by ther management in notes to accounts.
CA,CMA,CS Karan Gogia
(Employed)
(230 Points)
Replied 15 December 2011
FIFO MEthod is correct as per AS-2,..
The change of avg to FIFO method should require a seperate disclosure as it comes UNDER CHANGE IN ACCOUNTING POLICY.
you have to disclose
1. Reason for the change//(in this case it wud be better prsentation of finacial statement and in complaice with AS)
2. Financial impact due to change .
CA Chandani
(CA)
(217 Points)
Replied 15 December 2011
Financial Impact of change needs to be provided & seperately disclosed....
change is not an issue.
CAclubindia
