Physical Stock Verification for Spares

A lot of spare parts are purchased by our firm but consumption entries are not taken.
Can physical stock verification process be used to identify closing stock at year-end?
Replies (6)
Quick Summary
This discussion explores using physical stock verification to determine closing stock for spare parts at year-end, especially when consumption entries are often missed. It's confirmed that this method is effective, provided no issues are made to production during the verification period. Guidance is also provided on classifying spare parts inventory versus expenses, with a reference to Accounting Standard (AS) 10 for capitalisation criteria.

Yes ,but during such time issues shall not be made to production from stores .
Thanks for replying. Can you please clarify a bit?
Yes physical stock verification can be taken for proper analysis of closing stock and you should make entries

Yes go through as10 to classify spare parts inventory from expenses and their capitalisation criteria. Then do stock evaluation. 

Hey Yasaswi, can you please share a reference document for the same?

Sure Mr. Aniket I have attached and here is the link : https://www.mca.gov.in/Ministry/pdf/AS.pdf

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