Someone please answer my Query related to AS 2.......
How is defective inventory valued at the year end if we expect remedial work expense to make the goods in saleable condition in the next year?How to treat the expected remedial work expense in the curent year?Can we treat remedial work expense as cost of completion of product?
Dear MAHSHAD,
In general Cost of rework on defective inventory may be treated as factory overhead of the year in which such expenses have been incurred.
while in special cases exclusive contract terms when specify to cover the same in product cost then the same may be included as part of that product cost.
Twenty Point Nine Five Ventures Private Limited
Noida
CA Inter
View Details
CA Suraj Garg & Associates
New Delhi
CA Final
View Details
Malhotra Rajesh & Associates
New Delhi
B.Com
View Details
RMA And Associates LLP
New Delhi
CA Inter
View Details
CCI
Pro
CAclubindia
