Hi,
How do you value Inventories when we are dealing with futures in commodity market?
Generally stock is valued at lower of cost or market price. But in case we enter into futures contract for the same how do you value it?
Please reply
Remya (Manager) (25 Points)
31 January 2013Hi,
How do you value Inventories when we are dealing with futures in commodity market?
Generally stock is valued at lower of cost or market price. But in case we enter into futures contract for the same how do you value it?
Please reply
Shobhit Goel
(Chartered Accountant)
(101 Points)
Replied 01 February 2013
Dear Remya.
We only maintains inventory for Shares at market value at valued date.
And, for Future & derivates, we doesn't maintain any inventory because generates only income/loss so we whatever we earned/loss, will transfer to Income/Loss.
Thanks,
Shobhit
CAclubindia
