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AS2(revised)
Accountancy
Can anyone explain that why we take value of inventory always at (NRV or cost of inventory whichever is less) ?
Answers (1)
It's simple... As per AS-2 Stocks are always valued at lower of the NRV or cost price it's shows true and fair of the profit or financial position of the organisation... If you are valued stocks at higher of the NRV or Cost price it is indirectly leads to overvaluation of our Profit without making actual profit by the operations....
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