AS - 2 "Valuation of Inventories"

Accountancy

As per AS -2 "Valuation of Inventories" , Inventory should be valued at lower of __________ whichever is lower. 1. Cost and NRV 2. Cost or NRV Which is correct ? I think option 1 is right , but in the ICAI CA Inter study material , in some areas it is written as "Cost or NRV". Kindly clarify and I hope it is not an irrelevant question. Thanks in advance.

Avasarala Vivek Aditya

CA Inter

★ 6K+

12-Mar-22 11:59

695

Answers (2)

Please note that the first line of the question is - As per AS -2 "Valuation of Inventories" , Inventory should be valued at lower of __________ Kindly Ignore the words "whichever is lower"

Thread Starter

Avasarala Vivek Aditya

CA Inter

★ 6K+

12-Mar-22 12:02

No option 2 is correct ..cost or nrv whichever is lower

Priyanka R

CA Final

★ 20K+

12-Mar-22 16:23