As per AS2, while considering NRV, cost necessary to make the sale have to considred. Please give some examples in this regard?
There are monthly volume schems given to customers whereby they are entilted to rebate on the basis of slabs acheived. This is settled by credit note. Hence the customer gives net money.This is a consitent practise. Will this should be considered for NRV?
Can't it be argued that these are my selling costs and need not be considered for testing NRV under AS 2
NRV is actually the cost to be incurred for selling the product that is to be deducted from sale price. The volume discount is given after the sale is completed. So closing stock to be valued on cost or NRV which ever is lower
sudarshan CA
NO IT CAN'T. SINCE REBATE WHICH THE COMPANY IS GIVING AFTER TRANSACTION OF SALES AND NOT AT THE TIME OF SALE.
HENCE IT CAN'T BE CONSIDERED FOR VALUATION.
IF I AM WRONG THEN PLS CORRECT ME.
CAclubindia
