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If the model itself is removed wont the items that were required to manufacture that car model become useless and if so it cannot form part of inventory as it fails to sarisfy the defn. Of inventory? I mean shouldn't it be shown under current asset or non current asset as per its realization term? Please clarify
Answers (5)
CA Suraj Lakhotia Admin
It would still be inventory (held for disposal).
Sir my doubt here is if once it was recognised as inventory then should it always be recognized as such until it is disposed of even if it doesnot satisfy the defn. Of inventoey any longer? because on balance sheet date dont we have to reclassify like we would do for Loans(like we divide them into current and non current)
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