11-02-2003, 09:21 PM
thanx pervez and zubair,
Yes I did according to my auditor, but i need clearance on that,
actually my questions was that i have stock of 1000 M.T. on June 30, 2003, and up to initialling of accounts i.e. Sept.30, 2003 i have made sale of 5000 M.Tons. as i issue my stock on FIFO basis so my stock wiped out.
as I have gross during the year ended June 30, 2003. so my NRV will be lower than my Cost. so as per my policy i have to value the stock at NRV.and i m ready to do so.
but i m confused on one thing, in my opinion I should take that price on which i have actually sold my stock, i.e. with the that 5000 M.tons,
but my auditor says, you must take the price recent to the Initial date, as i have made sale @ Rs.4,000 Per MTon, (which is actual Net Realized Value)
by my auditor Says you should value the stock @ Rs.5,000/- per M.Ton which is most recent price.
I told him why should i overstate my stock by Rs.1,000/- per M.Ton.
He says I dont know <img src=icon_smile_big.gif border=0 align=middle>, you have to value the stock at most recent price.
I dont care about the effect of valuation, but I m confused about the method of valuation.
I hope this will clear my question and confusion.
S M R
Yes I did according to my auditor, but i need clearance on that,
actually my questions was that i have stock of 1000 M.T. on June 30, 2003, and up to initialling of accounts i.e. Sept.30, 2003 i have made sale of 5000 M.Tons. as i issue my stock on FIFO basis so my stock wiped out.
as I have gross during the year ended June 30, 2003. so my NRV will be lower than my Cost. so as per my policy i have to value the stock at NRV.and i m ready to do so.
but i m confused on one thing, in my opinion I should take that price on which i have actually sold my stock, i.e. with the that 5000 M.tons,
but my auditor says, you must take the price recent to the Initial date, as i have made sale @ Rs.4,000 Per MTon, (which is actual Net Realized Value)
by my auditor Says you should value the stock @ Rs.5,000/- per M.Ton which is most recent price.
I told him why should i overstate my stock by Rs.1,000/- per M.Ton.
He says I dont know <img src=icon_smile_big.gif border=0 align=middle>, you have to value the stock at most recent price.
I dont care about the effect of valuation, but I m confused about the method of valuation.
I hope this will clear my question and confusion.
S M R
