Net Realizable vaue for a new product

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Many new products are developed by Research & Development department of our company.

As new product take time to gain market/customer acceptance to go for field trials ,rectification of performance issues and their rectification etc it is carried at Cost for Ind As -2 Inventory valuation.

Can we apply the Market Price of similar products sold by other companies in the Industry as NRV for valuation of Inventory under Ind As-2? In such a case (using market value of other companies)whether this will be Fair Value or NRV?

 

Replies (1)

Yes. Adjusted market assessment method is the method used to price the transaction cost of goods ie selling price. So NRV can come from this method. 


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