10-28-2003, 05:48 AM
Suppose I had a certain stock of finished goods at balance sheet date,
my stock valuation policy is "Lower of average cost and NRV",
and movement of stock is on FIFO basis (due to the nature of business)
i have gross loss during the year, it means my cost is greater than my selling price or NRV (here selling expenses are not significant hence ignored)
now i will have to value my stock on NRV.
suppose I had 1000 M.Tons stock of F.G. and up to the date of initial of accounts i have made 5000 M.tons Sales. (which means my stock has wiped out) now the prices are going up, (recent prices)
now my auditor is insisting me to value to stock on most recent price,
i m telling him that I have sold my stock on low price that was the NRV for that 1000 M.Tons, what i m supposed to do ?????
can anybody guide me on that?????? kindly give refernces.
Regards
S M R
my stock valuation policy is "Lower of average cost and NRV",
and movement of stock is on FIFO basis (due to the nature of business)
i have gross loss during the year, it means my cost is greater than my selling price or NRV (here selling expenses are not significant hence ignored)
now i will have to value my stock on NRV.
suppose I had 1000 M.Tons stock of F.G. and up to the date of initial of accounts i have made 5000 M.tons Sales. (which means my stock has wiped out) now the prices are going up, (recent prices)
now my auditor is insisting me to value to stock on most recent price,
i m telling him that I have sold my stock on low price that was the NRV for that 1000 M.Tons, what i m supposed to do ?????
can anybody guide me on that?????? kindly give refernces.
Regards
S M R
