Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Purpose: To formulate the method of valuation of inventories on hand for Balance Sheet purposes. Inventories include: 1) Finished goods held for sale in the ordinary course of business. 2) Raw material/WIP in the process of production of such sale. 3) Material and spares to be consumed for such production( does not include machinery) 4) Spares which are used in common with all fixed assets.
4)
AS-2- Inventory
Value Raw material at Cost if the Selling price is more than the total cost of production of Finished Goods. If Selling Price is less than cost of production- value Raw Material at replacement Cost. If the difference between cost and Selling price of FG is 5% or less, only the difference can be reduced from Raw Material cost.