Ias 2

Somebody Plz help me for the question below. A ltd.co uses a single raw material and converts that into a finished good.During the cureent period the cost of production and sale price were as follows: raw materials 3 units at rs.8 each=rs.24 cost of conversion =rs.26 total manufacturing cost=rs.50 selling price=rs.75 On the balance sheet date there is a steep fall in the price of the products to rs.45 because of competition and a fall in the material prices.Currently materials can be purchased and sales at rs.7 per unit.On the balance sheet date there are 100,000 units of raw material in stock purchased at a cost of rs.8 per unit.How can we value inventory of raw material as on balance sheet date as per International Accounting Standard-2
Replies (1)

dear saman,

as per AS 2 if a finished good in which a raw mwterial is used is unable to recover its cost the the existing stock of raw material is to be valued at cost or replacement cost which ever is lower.

 

cheers

ganesh agarwala

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 28 October 2026
Article assistants

Shyam S Gupta and Company

New Delhi

CA Inter

View Details
Company
12 October 2026
Finance

I-Genext Consulting Private Limited

New Delhi

CA

View Details
Company
Featured ARTICLESHIP 06 October 2026
Semi Qualified

AJAY SINGH AND CO LLP

Thane

CA Final

View Details
Company
05 October 2026
Senior Accountant

Vision IT Peripherals Pvt Ltd

Mumbai

B.Com

View Details
Company
ARTICLESHIP 07 October 2026
Article assistant

S.K.Bajpai & Co.

Noida

B.Com

View Details
Company
06 October 2026
Assistant Manager - Audit and Compliance

Ravi K Jain & Co

Noida

Others

View Details
Company
ARTICLESHIP 23 October 2026
CA Articleship / Article Assistant

M N Rao & Associates LLP

Vijayawada

CA Inter

View Details
Company
08 October 2026
Accounts and Tax Associate

POOJA R TELI & CO

Pune

CA Inter

View Details