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

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
17 September 2026
Chartered Accountant

Dass Gupta & Associates

Gurgaon

CA

View Details
Company
ARTICLESHIP 15 September 2026
Freelance Taxation Content Writer Intern

Interactive Media Pvt Ltd.

New Delhi

CA Inter

View Details
Company
08 October 2026
Accounts and Tax Associate

POOJA R TELI & CO

Pune

CA Inter

View Details
Company
30 September 2026
Senior Accounts Executive

Codeboard Technology

Chennai

MBA

View Details
Company
19 September 2026
Finance Manager

Mugdha Art Studio

Hyderabad

CA

View Details
Company
ARTICLESHIP 01 October 2026
Articled Assistant

KPSN & Associates LLP

Chennai

CA Inter

View Details
Company
16 September 2026
Internal Audit - Team Lead

Consulting & Beyond

Chennai

CA

View Details
Company
Featured 03 October 2026
Accountant

A P Lodha and Associates

Jalna

B.Com

View Details